The Operational Aspects of Outwards Reinsurance Treaties

This paper discusses several operational considerations of outwards reinsurance treaties necessary to insure that the treaties are both functioning as intended, and properly reflected in the ceding companies financial statements. Commonly used treaty provisions and their impact on financial statements are discussed. The author has seen each of these provisions mishandled and is deeply indebted to many unnamed companies for first calling his attention to the fact that a seeming innocuous treaty clause, can sometimes create a significant distortion in financial statements. Reinsurance Research - Outward Program Design