This specialized course provides comprehensive coverage of reinsurance principles and practices, focusing on the strategic use of reinsurance for risk transfer and capital management in insurance operations. Participants will learn about different reinsurance structures, treaty types, and the negotiation processes involved in reinsurance placements. The curriculum covers proportional and non-proportional reinsurance, catastrophe covers, financial reinsurance, and the regulatory aspects of reinsurance transactions. Through case studies and practical exercises, learners will develop the expertise to structure reinsurance programs that optimize risk transfer and enhance insurer financial stability.
Reinsurance Principles and Practices
Banking, Insurance and Financial Services
October 25, 2025
Introduction
Objectives
Upon completion of this course, participants will be able to:
- Understand different types of reinsurance arrangements
- Structure reinsurance treaties and contracts
- Negotiate reinsurance terms and conditions
- Analyze reinsurance program effectiveness
- Navigate regulatory requirements for reinsurance
- Evaluate reinsurer security and capacity
- Develop catastrophe reinsurance strategies
- Manage reinsurance claims and recoveries
- Apply reinsurance in capital management
Target Audience
- Reinsurance Professionals
- Insurance Underwriters
- Risk Managers
- Actuarial Staff
- Insurance Executives
- Brokerage Professionals
- Regulatory Staff
Methodology
- Reinsurance treaty analysis
- Program design case studies
- Negotiation role-playing
- Claims recovery exercises
- Regulatory compliance scenarios
- Market placement simulations
Personal Impact
- Enhanced reinsurance knowledge
- Improved program design skills
- Stronger negotiation abilities
- Better risk assessment capabilities
- Enhanced strategic thinking
Organizational Impact
- Optimized reinsurance programs
- Improved capital efficiency
- Enhanced risk transfer
- Reduced volatility
- Increased financial stability
Course Outline
Unit 1: Reinsurance Fundamentals
Basic Concepts- Purpose and benefits of reinsurance
- Types of reinsurance arrangements
- Reinsurance market participants
- Historical development of reinsurance
Unit 2: Treaty Reinsurance
Contract Structures- Proportional treaty types
- Non-proportional treaty structures
- Treaty wording and clauses
- Claims handling procedures
Unit 3: Facultative Reinsurance
Individual Risk Coverage- Facultative certificate preparation
- Risk assessment for facultative
- Pricing facultative covers
- Facultative vs treaty comparisons
Unit 4: Catastrophe Reinsurance
Natural Disaster Coverage- Catastrophe modeling applications
- Event definition and triggers
- Catastrophe bond structures
- Industry loss warranties
Unit 5: Financial Reinsurance
Capital Management- Finite risk reinsurance
- Capital relief strategies
- Accounting treatment
- Regulatory considerations
Unit 6: Reinsurance Program Design
Strategic Planning- Program structure optimization
- Capacity planning and placement
- Reinsurer selection criteria
- Program monitoring and review
Unit 7: Regulatory and Accounting
Compliance Framework- Reinsurance regulation overview
- Accounting standards for reinsurance
- Solvency requirements
- International regulatory differences
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