Is there a difference between a swap and a reciprocal reinsurance? They seem to be the same. So a car insurer could reinsure a block of household insurance business and vice versa.
There are two types of swap. Traditional financial swaps might involve swapping currencies or interest rates. In your question above you are looking at swaps as a type of alternative risk transfer (ART). An ART swap is a wider concept than reciprocal reinsurance because the cashflows being swapped don't need to be insurance claims, eg an ice cream manufacturer could swap cashflows with an umbrella manufacturer. However, whenever the cashflows are the claims of insurers then yes, I'd say that it's the same as reciprocal reinsurance. I hope your studies are going well. Mark
