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reinsurance

  1. Y

    SP8 S2019 - Q6

    Q6(i) - Page 11 I believe the examiner has rounded off the decimal points for 'attachment' and 'exit' (columns 7 & 8 of the table) to two decimal places. This results in a Total Loss Cost to Layer of $495.55K (1.72% rate). However, when the decimal places are not fixed, the Total Loss Cost to...
    • yatsa
    • Thread
    • #sp8 excess layer pricing exposure curve general insurance general insurance pricing loss cost property insurance reinsurance
    • Replies: 1
    • Forum: SP8
  2. G

    Chapter 20: Question 20.4

    The first part of this question seeks to find the probability of at least one claim occurring in a year where the claim frequency are Poisson distributed. The value of claims are a constant of 2.5m The solution attempts to equate the risk premium = 2.5 * (1 - Probability (0 claims)) Why would...
  3. K

    F103 Reinsurance Products - Types

    A direct writer has a surplus reinsurance treaty with a maximum retention of R800,000 (there is no minimum retention level) and a maximum of 8 lines to be passed to the reinsurer. The following risks all gave rise to claims. In each case, calculate the range of possible amounts paid by the...
  4. H

    How does reinsurance work as a loan?

    The course notes in chapter 5 say: "Here, the reinsurer is paying some money to the insurance company to improve its cash balance. This payment is effectively a loan but is ‘disguised’ as a commission payment for the reinsurance. In return, the insurer will repay the loan out of the profits it...
    • Hanna Hohner
    • Thread
    • reinsurance
    • Replies: 2
    • Forum: SP8
  5. J

    Chapter 20: Reinsurance Pricing

    Hello there, I have quite a few questions on this chapter, any opinions/explanations would be greatly appreciated :) 1. (Section 5, pg 31): The first bullet point of the last paragraph - 'meeting risk transfer criteria ...' - Is this referring to the cedant's risk transfer criteria, or the...
    • JL24
    • Thread
    • reinsurance
    • Replies: 4
    • Forum: SP8
  6. A

    Contract Boundaries and related topics

    We can consider Sol ll here, but any significant differences with IFRS17 or IFRS4 would be helpful as well. 1. Could someone please explain the concept of cotract boundaries, from an insurer as well as a reinsurer point of view? 2. Can contract boundaries differ for an insurer and the same...
    • Arush
    • Thread
    • contract boundaries ifrs ifrs 17 reinsurance sa2
    • Replies: 1
    • Forum: SA2
  7. M

    Reinsurance Premiums under SII

    Hi, I would like to ask about treatment of reinsurance premiums under Solvency II. So far, I've only seen mention about treating PV of expected recoveries from reinsurance as an asset in the Core reading and questions solutions. If question asks about impact of reinsurance on the balance sheet...
    • Michal Piatra
    • Thread
    • reinsurance solvency ii
    • Replies: 2
    • Forum: SA2
  8. K

    All doubts from Chapter 25

    Just one ques from Ch23, rest from 25 Ques-1. In Chapter 23 -> There are North American and Conventional methods? Has it been deleted from the syllabus ?? Ques-2. Topic: Deposits back. Core reading says," deposits back are sometimes done so that the cedant gets the benefit of reinsurance...
    • Kamal Sardana
    • Thread
    • deposit back reinsurance sp2
    • Replies: 3
    • Forum: SP2
  9. K

    All doubts from chapter 24

    Hi Tutor, here are some of my queries: italics is core reading lines 1. Financial reinsurance is a contingent loan from reinsurer to insurer where repayments are contingent on say, insurer making profit on that block of business. Now Core reading says ," FinRE is not effective under supervisory...
    • Kamal Sardana
    • Thread
    • reinsurance sp2
    • Replies: 5
    • Forum: SP2
  10. M

    SA1 - Sep 2020 paper

    Hello, I have a question regarding the Sep 2020 paper, would be great if someone could help. In question 3 (iii), Describe how the premium review process could be conducted, the exam solution had one point: As reinsurance is not part of the contractual agreement between the insurer and its...
    • mossie
    • Thread
    • premium review reinsurance sa1
    • Replies: 2
    • Forum: SA1
  11. C

    Reinsurance for With-Profits or Unit-Linked contracts.

    Hi there, In the notes it says "It may prove difficult to obtain original terms reinsurane on with-profits business as the reinsurer would be obliged to follow the cedant's bonus rates". Similarly, I've seen in a past paper "It may prove difficult to obtain original terms reinsurane on...
    • clactuary
    • Thread
    • original terms reinsurance
    • Replies: 5
    • Forum: SP2
  12. C

    How does traditional reinsurance reduce required capital?

    How does traditional reinsurance reduce required capital? This is mentioned under section 6 of chapter 14 (capital management). I consider required capital to be the SCR and MCR. I thought that traditional reinsurance increases assets and hence available capital under Solvency II where...
    • curiousactuary
    • Thread
    • reinsurance sa2 solvency ii
    • Replies: 5
    • Forum: SA2
  13. J

    Reinsurance deposits

    Hello, I am getting confused with reinsurance deposits where the reinsurer pays their reserve to the insurer at (say) the start of each month. I understand how this improves counterparty risk (we are getting paid upfront) and I understand that we can make investment profit on the reserve that...
    • James_bristol
    • Thread
    • deposit back reinsurance reserves
    • Replies: 1
    • Forum: SP2
  14. E

    Impact of reinsurance on required capital

    Hi, 1. I would like to ask that, for a reinsurance treaty that transfers genuine insurance risk (such as mortality risk, longevity risk and so on), whether the following items are computed net or gross of reinsurance in Solvency II balance sheet: Best estimate liabilities (BEL) Risk margin...
    • Edward chong
    • Thread
    • reinsurance s ii
    • Replies: 3
    • Forum: SA2
  15. B

    Original terms vs quota share reinsurance

    Hi, What is the difference between reinsurance arrangements referred to as "original terms" and "quota share"? ST2 defines original terms as "Original premiums and benefits are proportionately shared" and then says that this may be on a quota share or individual surplus basis. How would an...
    • Benjamin
    • Thread
    • original terms quota share reinsurance
    • Replies: 1
    • Forum: SP2
  16. M

    April 2017 Q1(i)

    Hi Lindsay I'm trying to understand the reason why widening spreads is listed as a risk in the examiner's report. Isn't it only a risk if the company doesn't intend to hold the bonds to maturity? I would assume that the company does intend to do so if it's assets and liabilities are...
    • Mbotha
    • Thread
    • bel bonds credit risk premium credit spread liquidity premium reinsurance scr spread
    • Replies: 8
    • Forum: SA2
  17. P

    Chapter 25, Flashcard 15

    The question concerns reinsurance premiums, but the answer seems to revolve reinsurance commission. Is this is an error in the flashcard, or am I missing something?
    • Phani Vasantarao
    • Thread
    • reinsurance st1
    • Replies: 1
    • Forum: SP1
  18. P

    Chapter 25: Flashcard 9

    In this flashcard, with regards to the first part of the question, I can't see any meaningful difference between the answers to the first two options. Essentially, we seem to be saying in both cases that financial assistance is where the reinsurer lends money to the cedent against expected...
    • Phani Vasantarao
    • Thread
    • reinsurance st1
    • Replies: 2
    • Forum: SP1
  19. E

    Original Terms Reinsurance

    Chapter 24 Page 2 of the CMP says that for original terms: "This method involves a sharing of all aspects of the original contract. Hence, the premium is split between the insurer and the reinsurer in a fixed proportion and any claim is split in that same proportion." - If the claim is split in...
    • edcvfr
    • Thread
    • reinsurance
    • Replies: 4
    • Forum: SP2
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