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Reinsurance premium during claim

S

Svensson

Member
Hi,

Assume an income protection insurance with a waiver of premium.

Does the cedant need to pay reinsurance premium in respect of claimants? or is the reinsurance premium waived just as the policyholder premium?

Of course it depends on the specific wording of the treaty, but is there any common practice?

Does the answer change according to the type of reinsurance? (quota share, surplus, excess of loss...)

Does the answer change according to the type of reinsurance premium? (original terms, risk premium...)

Thanks.
 
Hi Svensson

You are spot on that it depends on the wording of the treaty.

To offer another perspective, does it matter for the cedant, for one, you should only have a small percentage of the in-force book on claim, two, the WOP should be small in comparison to the actual benefits being paid.

Cheers,
Jian
 
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