Reserving for Special Provisions in Reinsurance Contracts

Many reinsurance contracts have adjustable premium and loss limiting features which complicate the reserving process. This session addresses such features as swing rating, loss ratio caps, profit commissions, aggregate deductibles, and pre-set commutation terms. While included in many traditional reinsurance contracts, these special provisions are also used in financial reinsurance. Therefore, some of the peculiar elements of financial reinsurance reserving and accounting will be mentioned.