ICMIF Reinsurance Manual
ICMIF
Publication Date: 1994
Published by: International Cooperative and Mutual Insurance Federation (ICMIF)
Document Type: Other (Microsoft Word)
A guide to establish and administer a reinsurance program.
The manual lays special focus on newly-formed insurance companies that have limited capital due to which choosing the right reinsurance program vis-a-vis the requirements, becomes very important.
The manual is in four sections. Section one, which is the general background, describes the following points:
- Planning: company's reinsurance requirements, 'risks' and 'accumulations', setting of retentions and reinsurance limits;
- Methods of reinsurance;
- Application of different forms of reinsurance;
- Practical aspects of placing a program;
- General accounting requirements.
Section two provides an overview of accounting for all the users of reinsurance. It explains the following terms:
- Proportional treaties' commission: flat rate of commission, sliding scale of commission, overriding commission, brokerage and profit commission;
- Portfolios: portfolio premiums, valuation of portfolio premium, portfolio losses;
- Reserves: premium, loss and cash reserves;
- Non-proportional accounts: payments of premiums and losses.
Section three provides a detailed review of the administrative procedures involved in dealing with reinsurance treaties. Section four has a number of practical examples and exercises that can be used for learning administrative and accounting procedures and also for training purposes.
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