Abstract
In this paper we compare a strategic reinsurance program (SRP) with life insurance covers, retrospective premium calculation methods, covers by captive companies, bank guarantees, and investment activities of clients in a bank. The comparison leads to an interesting analysis of the SRP, which is generally recognized by the authorities as a reinsurance cover. The paper confirms the validity of this assessment. It also provides evidence that in many respects an SRP – which is an important unconventional reinsurance cover - has more insurance-specific properties than other, conventional reinsurance covers, and shows why an SRP is a reinsurance cover rather than a banking operation.
Key words: Strategic reinsurance program, cumulative result, standard premium, loss experience discount, intermediate and final result adjustments, basic premium, pre- and post-financing reinsurance treaties, bonus and malus, partially and totally senseless reinsurance treaties, strategic objectives, parent company, captive company, fronting company, stand-by credits, a priori and a posteriori banking activities.
Volume
Berlin
Year
2003
Categories
Business Areas
Reinsurance
Finite Risk
Actuarial Applications and Methodologies
Accounting and Reporting
Risk Transfer Testing
Publications
ASTIN Colloquium
