reinsurance: insurance to insurers'1 l n college of management & technology guided by:-...

Reinsurance: Insurance to Insurers' 1

L N COLLEGE OF MANAGEMENT &

TECHNOLOGY

Guided By:- Prof. Mrs. Sucheta Pawar

Presented By:- Piyush Goyal (11)

Reinsurance: Insurance to Insurers'

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DEFINITONS

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium.

INSURANCE

RE-INSURANCE

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HISTORY Achener Ruck in 1852

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Types Of Reinsurance

Treaty

Facultative

Retrocession

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Reinsurance

Treaty Facultative

Non-ProportionalProportional

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oIndividual risk review No individual risk scrutiny by the reinsurer

oRight to accept or reject each risk on its own merit

oObligatory acceptance by the reinsurer of covered business

A contract or certificate is written to confirm each transaction

One contract encompasses all subject risks

oA profit is expected by the reinsurer in the short and long term, and depends primarily on the reinsurer’s risk selection process

oA long-term relationship in which the reinsurer’s profitability is expected, but measured and adjusted over an extended period of time

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Reinsurance In India

GIC only Reinsurer Min. of 10% reinsured with GIC Insurer to maintain Max. Retention Inter company cession between four PSU

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Rank Company Net premiums written

1 Swiss Re Group $27,680,199,200

2 Munich Re Group $23,760,161,400

3 Hannover Re Group $9,661,392,406

4 Berkshire Hathaway/Gen

Re Group$9,491,000,000

5 Lloyd's of London $6,948,466,800

6 XL Re $5,012,910,000

7 Everest Re Group Ltd. $3,972,041,000

8 PartnerRe Ltd. $3,615,878,000

9 Transatlantic Holdings

Inc. $3,466,353,000

10 ACE Tempest

Reinsurance Ltd.$2,848,758,000

GIC $10,55,00,000

Top 10 Reinsurers of the World

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Government Regulations

The Insurance Act, 1938 Insurance Regulatory and Development

Authority (IRDA) Act, 1999 26% FDI Min. 200Cr Paid up capital Regulated by IRDA

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Suggestions

Increase FDI Deregulate Market Completely Amendments in Insurance acts Market forces form Policies Minimise Formalities

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Earthquakes Tsunami Floods Hurricanes Terrorist Attacks

Setbacks to the Industry

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Customer awareness

Underwriting

Distribution

Investmentmanagement

Operations

Infrastructure

Regulations

Regulator

Government

Players

Industry bodies

• Consistency & stability

• Support information

• Consumer awareness

• Property rights

• Information

• Increase customer awareness

• Product design and product coverage

• Extend reach

• Increase customer awareness

• Information

Reinsurer

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I DONT WANT INSURANCE

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Thank You

Questions

&

Suggestions