Hey, Would there be a list of reinsurance types that can be used for certain products / certain scenarios? e.g. A company with low free asset - FinRe An exhaustive list would be handy to refer to! Thanks, Aaron
Hi Aaron Here are some thoughts on the link between type of reinsurance and scenario. Low free assets - yes FinRe (also any type of reinsurance protects the insurer from losses draining the last of their free assets) Risk premium - any type of contract, but particularly useful when reserves are significant and the sum at risk method is used Original terms - works well for term assurance. Difficult to use for with-profits and unit-linked as the reinsurer has to follow the insurer's investment/bonus strategy as the reinsurer pays the maturity/surrender claims too. Surplus - useful when policies vary by size and insurer is more worried about large claims Quota share - covers all claims, so useful if there are many claims, eg parameter error, mispricing. Links well with reinsurer providing expertise as reinsurer gets some of all the business. Catastrophe XL - useful for group protection business Aggregate XL - protects the entire portfolio from claims whether it's many smaller ones or a few larger ones. Individual XL - basically identically to individual surplus. Best wishes Mark
