This is a reasonably detailed introduction to proportional treaty reinsurance designed to give attendees a working understanding of why treaties exist, how they operate and the basic servicing issues involved. This is a participative event, with a mixture of tuition and guidance together with practical exercises. Delegates are encouraged to actively participate in the course through discussion with the course leader and the other attendees.
This is a course designed principally but not exclusively for staff who are working in a reinsurance environment and whose current job calls for a more detailed knowledge of the subject. For technicians and or brokers, this would normally be individuals that have been working in insurance or reinsurance for between 1-3 years.
At the end of the event attendees should understand and be able to explain the concept of Risk Sharing and the Purpose of the Proportional Account:
- the principle of proportional reinsurance
- the concepts of Quota Share and Surplus treaties and the effect they may have on an Insurers capacity to write business
- the advantages and disadvantages of this business to both the Reinsured and the Reinsurers.
Technical Accounting and its Component Parts
- how risks, liability, premium & claims are allocated to treaties
- the different types of commission that can apply to treaties, their effect on possible profitability and to calculate standard profit and sliding scale commissions
- the principles and purpose of premium and loss reserves and how they are calculated
- understand the component parts of technical treaty accounts and be able to complete standard treaty statements for Reinsurers
Issues and Pitfalls
- be aware of the main problems and errors associated with treaty technical accounting and how to avoid them