Loss Portfolios: Financial Reinsurance [Review]

In reviewing Lee Steeneck’s excellent paper on loss portfolio transfers, it became clear that two distinct sets of issues should be covered in any discussion of this particular form of reinsurance. The first area which needs to be addressed deals strictly with the pricing consideration involved in any of these deals. The second. and perhaps more important area, is that of the non-pricing considerations, in which both the justification and impact of discounting loss reserves are covered. I will present a few of my thoughts in each area, expending on points brought out in the article.