C
craufujy
Member
Are reserves used as a reinsurance premium only for surplus relief or is this how normal reinsurance arrangements are set up?
I've read that some reinsurance contracts have deposit back facilities, meaning the cedent gets to keep the reserves and earn interest on them which I assume means that the reserves and a little extra is given to the reinsurer at outset? Is this always the case? Can you give examples of when this would apply i.e. for QS, surplus relief, XL reinsurance?
Thanks.
I've read that some reinsurance contracts have deposit back facilities, meaning the cedent gets to keep the reserves and earn interest on them which I assume means that the reserves and a little extra is given to the reinsurer at outset? Is this always the case? Can you give examples of when this would apply i.e. for QS, surplus relief, XL reinsurance?
Thanks.