hi, Under origial term reinsurance, all aaspects of the origial contract would be shared. Will the expense risk and withdrawal rish be also shared?
No: The reinsurer does not have the same level of administration costs as the direct insurer, which is why they can offer a reinsurance commission on the product. Obviously, the reinsurer would have their own costs to consider, but they won't be exposed to the direct insurers expense risk I'm not sure about persistency, but presumably when the policy lapses with the direct insurer, they would quickly cancel the reinsurance policy (if possible) otherwise they would be paying for cover that they don't need
