什么是再保险？(DOC7)

1、.：.；What is Reinsurance?Reinsurance is insurance for insurance companies. Many insurers around the world purchase reinsurance to reduce their exposure to the risks they have underwritten in order to provide better protection to their clients. While the concept may be simple, like most industries, re

2、insurance has a terminology that can be difficult to interpret for those who do not use it on a daily basis.At PartnerRe, we thought a glossary of reinsurance terms might help de-mystify the business and its language.Acquisition CostsExpenses incurred by the insurer or the reinsurer in assessing bus

3、iness, including producer commissions and brokerage. Adjustable RateA percentage rate applied to a cedents sums insured or premium income which is used to determine the final premium payable.Aggregate DeductibleA loss limit which is retained by the cedent and is gradually eroded by frequency of loss

4、 activity.Aggregate LimitThe maximum sum of recoveries payable under a reinsurance agreement.Alternative Risk Transfer (ART)Non-traditional methods of insurance or reinsurance, for example, securitization.AssumeThe term used for accepting a risk; the opposite of cede.Attachment BasisA provision that

5、 determines whether, and in what manner, a reinsurance agreement covers a specific loss.Attachment PointIn excess of loss reinsurance, the loss level at which reinsurers begin to pay.BalanceA reference point used to measure premium volume against the maximum exposure for a reinsurance agreement.Bank

6、The sum of the total premiums paid to reinsurers over a multi-year period, less any losses paid by reinsurers on a layer. For example, payments of $10,000 premiums over five loss-free years would be called a $50,000 bank.Broker MarketWhen business is written through reinsurance intermediaries (broke

7、rs), it is referred to as business obtained in the Broker Market.Broker of RecordThe appointed broker for a contractual reinsurance agreement.Burning Cost RatioA tool used in determining rates for excess of loss reinsurance. Also called the pure loss cost, it is the ratio of historical incurred loss

8、es (usually excluding IBNR and indexed to portfolio growth) of a reinsurance agreement to the subject premium.CapacityThe maximum dollar amount of exposure that an insurer or reinsurer can underwrite. Capacity may be used when referring to a single risk, a program, a line of business or an entire bo

9、ok of business.CaptiveAn insurance or reinsurance company, formed by a large, often multi-national corporation, which insures or reinsures the risks of its parent corporation. Most captives are located in tax-advantaged locations. Bermuda is the leading domicile for captives followed by Cayman, Verm

10、ont and Guernsey.Casualty ReinsuranceLiability or third party business.CatastropheHigh severity events such as hurricanes, earthquakes and other disasters, involving multiple insureds and/or locations. Catastrophe reinsurance indemnifies the insurer for portions of such losses.CedentAn insurance com

11、pany which contractually transfers (cedes) a portion of risk to a reinsurer. The term can also refer to a reinsurer which transfers (cedes) a portion of its portfolio to a retrocessionnaire.Ceding CommissionThe costs incurred by the cedent in negotiating a reinsurance contract including overhead exp

12、enses, taxes, licenses and fees, plus a fee representing a share of expected profits, sometimes expressed as a percentage of the gross reinsurance premium.Clash CoverA form of reinsurance protecting a cedents exposure to multiple retentions and a larger single loss than intended due to losses incurr

13、ed by two or more insureds for the same event, or clash.CoinsuranceThe part of the reinsurance cover that the insurance company retains and does not reinsure.Combined RatioThe sum of the loss ratio and the expense ratio. The combined ratio is used in both reinsurance and insurance to indicate whethe

14、r the company is making a profit on its underwriting operations. A combined ratio below 100% is representative of a profitable underwriting portfolio.CommutationThe conclusion of all obligations between the parties to a reinsurance agreement, often completed with a lump sum cash settlement.Cover Not

15、eThe document or receipt issued by the intermediary to the cedent confirming terms and conditions and the percentage share placed with each reinsurer.Direct MarketWhen reinsurance business is written directly by a reinsurer, rather than through a third party or broker, it is referred to as business

16、obtained in the Direct Market.Direct Written PremiumAn insurers premium income before taking outward reinsurance into account.Earned PremiumThe portion of a reinsurers premium income which has been allocated to the current accounting period.Estimated Maximum Loss (EML)An underwriters or insurers ass

17、essment of the worst possible loss scenario that might be experienced by an individual risk or collection of risks.Event / OccurrenceA natural or man-made disaster which gives rise to a large loss.Excess of Loss ReinsuranceA form of reinsurance where the reinsurers liability only takes effect when a

18、n event involving several risks exceeds a certain figure and then is only liable in excess of that amount.Expense RatioThe percentage of premium income that goes to expenses, calculated by dividing incurred expenses by written premiums. A reinsurance companys expense ratio reflects how much it costs

19、 a company to acquire its premiums.ExposureThe measure of an insurers or reinsurers possible losses.Extra Contractual Obligations (ECO)A term used to refer to damages awarded by a court against an insurer which are outside the conditions of the insurance policy. Examples are HYPERLINK partnerre/page

20、s/reinsurance-solutions/re_terms.html l Anchor-Punitive-27632#Anchor-Punitive-27632 punitive damages and HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Losses-16019#Anchor-Losses-16019 losses in excess of policy limits.Facultative ReinsuranceA form of reinsurance where the in

21、surer has the option (faculty) of submitting individual risks and the reinsurer has the option of accepting or declining those risks on an individual basis.Financial GuarantyInsurance which indemnifies an insured against asset impairment due to counter-party default, adverse currency or interest rat

22、e movements, or political acts such as government expropriation.Financial / Structured Risk TransferA form of reinsurance in which underwriting risk transfer between cedent and reinsurer is substantially reduced through contractual provisions requiring loss payments to be matched against premiums an

23、d investment income.First LossThe first part of a loss. This is the most likely part to be retained by the reinsured.Follow the FortunesA condition in a reinsurance contract where it is agreed that the reinsurer is bound to the same experience as the cedent, in terms of the risks covered.FranchiseA

24、term used to describe the amount that triggers a policy.Gross LineThe maximum limit an insurer or reinsurer is willing to accept before ceding portions of their exposures to a reinsurer or retrocessionnaire. Such limits are usually expressed per insured, per line of business. See HYPERLINK partnerre

25、/pages/reinsurance-solutions/re_terms.html l Anchor-Net-3276#Anchor-Net-3276 Net Line.Gross Net Premium Income (GNPI)Total of all gross premiums after deductions for reinsurance costs but before deductions for commissions.Ground Up LossThe total measure of an insurance loss, including deductibles an

26、d before any retention or reinsurance is applied.Hard MarketA fluctuation in the insurance/reinsurance market characterized by an increase in the pricing level of insurance and reinsurance coverage. A hard market follows a soft market and is often triggered by a major catastrophe loss and/or a prolo

27、nged period of operating losses.IBNR (Incurred But Not Reported)Insured losses that have occurred but have not been reported, and that are accounted for by an estimated reserve. See HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Long-Tail-48308#Anchor-Long-Tail-48308 Long Tai

28、l Liability.Layer A term which refers to a segment of a reinsurance cover.Lead ReinsurerThe reinsurer who first signs the slip after negotiating the terms, conditions and pre- mium rates; reinsurers who subsequently sign on to the slip under those terms and conditions are considered “following reins

29、urers.Letter of CreditA document issued to an insurer or reinsurer by a bank, guaranteeing the withdrawal of funds in the event of a valid claim.LloydsA London-based insurance and reinsurance organization in which individuals, called “Names, or groups of individuals, called “Syndicates, rather than

30、a single corporation, are at risk. Membership has now been extended to corporations, called “Corporate Capital, underwriting under limited liability.London MarketA collective term to describe all underwriting companies (insurance and reinsurance) and Lloyds, based in the City of London.Long-Tail Lia

31、bilityA liability that takes time to become known or a claim which has been separated by the circumstances that caused it by more than ten years. Characterized by a high HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-IBNR-5#Anchor-IBNR-5 IBNR.Loss Adjustment Expense (LAE)Expe

32、nses incurred by an insurer during its adjustment, recording and settlement of claims, additional to the claim payment itself.Loss DevelopmentThe difference in the amount of losses between the beginning and end of a time period.Losses in Excess of Policy Limits (XPL)A term used to refer to damages a

33、warded by a court against an insurer, due to the insurer having failed to settle a third party claim within the policy limits. See Extra Contractual Obligations and Punitive Damages.Loss RatioThe relationship of losses incurred (including applicable IBNR) plus loss adjustment expenses to earned prem

34、iums for an accounting period.Maximum Foreseeable Loss (MFL)Worst case scenario under which an estimate is made of the maximum dollar value that can be lost if a catastrophe, such as a hurricane or earthquake, occurs.Net LineThe maximum limit an insurer or reinsurer is willing to accept after ceding

35、 portions of their exposures to a reinsurer or retrocessionnaire. Such limits are usually expressed per insured, per line of insurance, etc. See HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Gross-65413#Anchor-Gross-65413 Gross Line.Non-proportional ReinsuranceAn arrangement

36、 in which a reinsurer makes payments to an insurer whose losses exceed a predetermined retention level. Non-proportional reinsurance is either facultative or treaty. See HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Catastrophe-54189#Anchor-Catastrophe-54189 Catastrophe, HYP

37、ERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Excess-21170#Anchor-Excess-21170 Excess of Loss Reinsurance, HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Stop-3388#Anchor-Stop-3388 Stop Loss.Obligatory TreatyA treaty where the cedent is obligated to cede

38、 the defined business and the reinsurer is required to accept.Over-lineCoverage that exceeds the normal capacity of an insurer or reinsurer.Probable Maximum Loss (PML)An estimate of the maximum dollar value that can be lost usually assuming that loss control systems (e.g. sprinklers and firewalls) o

39、perate. See HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Maximum-22462#Anchor-Maximum-22462 Maximum Foreseeable Loss (MFL).Professional ReinsurerA reinsurance carrier that is focused on writing reinsurance business only.Profit CommissionA profit allowance payable to a reins

40、ured from the reinsurer. This is a pre-determined percentage agreed by both parties and payable when the contract period is closed and the results are finalized.ProgramA series of, usually consecutive, reinsurance layers.Pro Rata/Proportional ReinsuranceA form of reinsurance where the reinsurer shar

41、es losses in the same proportion as it shares premiums. Proportional reinsurance can be divided into two basic forms: quota share, in which the same percentage applies to all policies reinsured, and surplus, in which the percentage may vary from policy to policy.Punitive DamagesA term that refers to

42、 damages awarded by a court against an insurer in addition to compensatory damages. See HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Extra-15105#Anchor-Extra-15105 Extra Contractual Obligations and HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Losse

43、s-16019#Anchor-Losses-16019 Losses in Excess of Policy Limits.Quota Share ReinsuranceSee HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Pro-27668#Anchor-Pro-27668 Pro Rata/Proportional Reinsurance.Rate on LineReinsurance premium divided by indemnity. The rate which, when mult

44、iplied by the indemnity, would produce the premium. The inverse is known as the payback period. For example, a $10,000,000 catastrophe cover with a pre- mium of $2,000,000 would have a rate on line of 20% and a payback period of five years.ReinstatementThe restoration of a reinsurance cover limit on

45、ce it has been exhausted (used up) by a loss.Reinstatement PremiumAn additional reinsurance premium paid to restore (reinstate) the portion of limit used in the event of a loss.ReinsuranceA form of insurance for insurance companies. By purchasing reinsurance, an insurer can reduce its exposure by ce

46、ding a portion of its liability to the reinsurer.Reinsurance Intermediary/BrokerA third party used in the design, negotiation and administration of a reinsurance agreement. Intermediaries consult cedents on the type and amount of reinsurance coverage they need and negotiate the placement of coverage

47、 with reinsurers. See HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Broker-24216#Anchor-Broker-24216 Broker Market and HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Direct-5700#Anchor-Direct-5700 Direct Market.ReinsurerA company which contractually a

48、ssumes all or part of an insurers or reinsurers risk.Renewal SeasonThe period during which most reinsurance policies are renewed. The majority of reinsurance policies have a January 1st inception date.ReservesAn estimated amount put aside in the insurers or reinsurers accounts for claims that have n

49、ot been paid.RetentionThe portion of a loss retained by the cedent under a reinsurance agreement. The level at which the retention is used up is the attachment point for the reinsurer.RetrocessionThe transfer of all or part of a reinsurance risk from one reinsurer to another (retrocessionnaire).Retr

50、ocessionnaireA reinsurer that contractually assumes all or part of a reinsurance risk from another reinsurer. The transfer is known as retrocession.Salvage and SubrogationCertain rights of the insured which automatically transfer to the insurer upon settlement of a loss. Salvage applies to any proce

51、eds from the recovery of damaged property, while subrogation refers to the proceeds of negotiations or legal actions against negligent third parties.SecuritizationRisk transfer techniques in finance and insurance often resulting in the creation of securities (e.g. bonds), that are backed by cash flo

52、ws from a pool of assets or liabilities.SlipA binding contract authorizing the acceptance of risk, often including more than one reinsurer.Soft MarketA fluctuation in the insurance/reinsurance market, characterized by increased competition in which prices are depressed, and is usually attributed to

53、excess capacity (more sellers than buyers) and/or high interest rates. See HYPERLINK partnerre/pages/reinsurance-solutions/re_terms.html l Anchor-Hard-7322#Anchor-Hard-7322 Hard Market.Special AcceptanceA risk which, due to underwriting class or limit, would not otherwise be covered but is attached

54、to the reinsurance agreement by specific written agreement between the cedent and the reinsurer.Spiral/LMXAn LMX contract is excess of loss reinsurance for London Market companies. These retrocessional contracts are placed without coinsurance or significant retention and the same loss may therefore

55、be passed backwards and forwards between the various participants never diminishing in size. This is colloquially called the “spiral.Stop Loss ReinsuranceA form of reinsurance under which the reinsurer protects a cedent against an aggregate amount of claims which exceed a pre-determined level of the