E
Edward chong
Member
Hi,
I would like to ask that:
1. How significant is this risk to insurers in different types of treaty (e.g. a yearly renewable treaty versus a long-term contract where reinsurance rates are reviewable)?
2. Do credit default swaps (single-named, multi-named or index-based) normally used by insurers to transfer the said risk? If not, what are other ways to transfer this risk?
3. Is this risk rewarding or not? A risk is rewarding if an insurer actively takes this risk to generate expected profits that add value to its business & achieve competitive edge.
4. If a pure reinsurer (i.e. only writes reinsurance business) becomes insolvent, do reinsurance claims of direct insurers ranked alongside, above or below other unsecured senior debts?
Thank you.
I would like to ask that:
1. How significant is this risk to insurers in different types of treaty (e.g. a yearly renewable treaty versus a long-term contract where reinsurance rates are reviewable)?
2. Do credit default swaps (single-named, multi-named or index-based) normally used by insurers to transfer the said risk? If not, what are other ways to transfer this risk?
3. Is this risk rewarding or not? A risk is rewarding if an insurer actively takes this risk to generate expected profits that add value to its business & achieve competitive edge.
4. If a pure reinsurer (i.e. only writes reinsurance business) becomes insolvent, do reinsurance claims of direct insurers ranked alongside, above or below other unsecured senior debts?
Thank you.
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