Reinsuring the Captive/Specialty Company

It is coincidental that the 1982 call paper program on the pricing, underwriting, and managing of large risks is being held here in Florida. Only several months ago, I was approached as a professional reinsurance actuary to give input to a reinsurance program for a Florida physicians group. Recent legislation in the state (presumably to alleviate some of the rate pressure) had restricted annual loss payments on claims to $100,000. Of course, juries were entitled to hand down verdicts of their choice. Deferred claim payments are subject to an interest penalty. In certain cases, this leads to a $100,000 annuity in perpetuity (!I passed down from generation to generation. Although our approach has not been finalized, this exemplifies the peculiar needs today of captive or specialty companies.