# Reinsurance

Topics: Insurance, Mathematics, Actuarial science Pages: 2 (526 words) Published: November 5, 2010
Reinsurance functions an

I was thinking to start with the history of reinsurance, then to talk about why we need the reinsurance . My thesis consist of 3 parts, in first part I think to say something about Reinsurance itself and history of reinsurance, then also in part one different definitions of Reinsurances then to talk about why we need the reinsurance, in 2nd part we would have Functions of Reinsurance, we have six functions and continuing to talk different functions in Reinsurance, such as Increase in large line of capacity, Stabilize loss experience, Providing the surplus relief, Facultative withdrawal form market segment and Providing underwriter guidance. For 3rd part of the thesis left to talk about different types of Reinsurance Pro Rata (proportionally) also going in details of Quota Share Reinsurance and Surplus reinsurance & Excess of Loss (non proportionally) per Risk excess of loss reinsurance, Catastrophe excess of loss reinsurance … and their relationships.

1. Intoroduction 2pages

2. History of Reinsurance around 2pages

3. Functions of Reinsurance 20 pages
-Increase in large line of capacity

-Stabilize loss experience

-Provide surplus relief

-Facultative withdrawal form market segment

-Provide underwriting guidance

4.Diffrent types of Reinsurance 20 pages

Proportional A type of reinsurance in which the primary insurer and reinsurer proportionally share the amounts of insurance, policy premiums, and losses. (Quota Share and Surplus Reinsurance)

Non proportional Reinsurance A type of reinsurance is type of reinsurance in which the primary insurer is indemnified for losses that exceed a specified dollar amount.

5. Conclusion 2pages

Non-proportional reinsurance is becoming more and more popular today. The three major pricing techniques to calculate the adequate premium for non-proportional reinsurance are Burning Cost¡BExposure Rating and Pareto Model. These methods are...

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