Level: Intermediate
Why you need this learning module:
After completing this learning module, you’ll be able to evaluate your company’s use, if any, of reinsurance.
Upon successful completion of this learning module, you should be able to:
- Describe the purpose of reinsurance.
- Describe the six functions of reinsurance.
- Describe treaty reinsurance and facultative reinsurance.
- Describe the three sources of reinsurance.
- Describe the following types of pro rata reinsurance and their uses:
- Quota share reinsurance
- Surplus share reinsurance
- Given a case, determine how the primary insurer and the reinsurer would share the amount of insurance, the premium, and covered losses under quota share and surplus share treaties.
- Describe the following types of excess of loss reinsurance:
- Per risk excess of loss reinsurance
- Catastrophe excess of loss reinsurance
- Per policy excess of loss reinsurance
- Per occurrence excess of loss reinsurance
- Aggregate excess of loss reinsurance
- Given a case, determine how the primary insurer and the reinsurer would share losses under per risk excess of loss, catastrophe excess of loss, per policy excess of loss, per occurrence excess of loss, and aggregate excess of loss treaties.
- Describe the characteristics of finite risk reinsurance.
- Explain the reinsurance concerns of risk management professionals.
- Given a case, identify how an organization may benefit from its insurer’s use of reinsurance or the use of reinsurance with its captive insurer.
Cost: $20 per Professional Development Hour (PDH). Information on Professional Development Hours (PDH) provided can be found here.
Reinsurance and Its Importance to a Risk Financing Program Topics Include:
- Purpose of reinsurance
- Six functions of reinsurance
- Treaty reinsurance and facultative reinsurance
- Three sources of reinsurance
- Quota share reinsurance and surplus share reinsurance and their uses
- How the primary insurer and the reinsurer would share the amount of insurance, the premium, and covered losses under quota share and surplus share treaties
- Types of excess of loss reinsurance, including per risk excess of loss reinsurance, catastrophe excess of loss reinsurance, per policy excess of loss reinsurance, per occurrence excess of loss reinsurance, and aggregate excess of loss reinsurance
- How the primary insurer and the reinsurer would share losses under per risk excess of loss, catastrophe excess of loss, per policy excess of loss, per occurrence excess of loss, and aggregate excess of loss treaties
- Characteristics of finite risk reinsurance
- Reinsurance concerns of risk management professionals
- How an organization may benefit from its insurer’s use of reinsurance or the use of reinsurance with its captive insurer
Additional Course Resource
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