This section describes the products whose main aim is risk financing. In 5.3 it explains that they can be categorised in two types: pre-funded and post-funded.
This section is followed by five more specific types. My concern is whether we can classify these five types within the two above:
- Time & distance deals are obviously pre-funded.
- Spread-loss covers are likely to be prefunded but can they be considered as post-funded in the case of a trigger event occurring in the earlier part of the multiyear contract?
- Financial quota share seem to be post-funded.
- Structured finance do not seem to fall within any category since they are not necessarily sold to insurance companies.
- Industry loss warranties are also pre-funded.
Is this interpretation correct?
Last edited by a moderator: Dec 22, 2014
