Reinsurance Course

Lesson 1 • Regulatory and Accounting Overview

Surveys the regulatory environment and accounting treatment of reinsurance. Sets the compliance and financial reporting context for later chapters.

Lesson 2 • Key Parties and Market Structure

Identifies cedents, reinsurers, and intermediaries and their relationships. Provides the organizational context needed to understand contract flows.

Lesson 3 • Functions and Benefits of Reinsurance

Explains capacity expansion, stabilization, and catastrophe protection functions. Connects reinsurance value to insurer financial strategy.

Lesson 4 • What Reinsurance Is and Does

Defines reinsurance and its economic purpose within risk transfer. Anchors all subsequent technical content in a clear conceptual framework.

Lesson 1 • Treaty vs. Facultative Reinsurance

Contrasts automatic treaty coverage with individually negotiated facultative placements. Establishes the primary structural distinction used throughout the industry.

Lesson 2 • Non-Proportional Reinsurance Structures

Explains excess of loss and stop loss arrangements and their triggers. Shows how non-proportional structures protect against severity and aggregate losses.

Lesson 3 • Facultative Placement Process

Details the submission, negotiation, and binding steps for facultative risks. Prepares students to manage individual risk placements end to end.

Lesson 4 • Proportional Reinsurance Structures

Covers quota share and surplus share treaties and their mechanics. Demonstrates how proportional structures allocate premium and loss simultaneously.

Lesson 1 • Anatomy of a Reinsurance Contract

Maps the standard sections of a reinsurance agreement from preamble to signatures. Provides a structural template for all contract analysis tasks.

Lesson 2 • Dispute Resolution and Termination

Reviews arbitration, mediation, and contract cancellation provisions. Prepares students to manage contract disputes and orderly run-off situations.

Lesson 3 • Coverage Scope and Definitions

Examines how contracts define covered business, perils, and territories. Precise scope definitions determine what losses are recoverable under the agreement.

Lesson 4 • Financial Terms and Adjustments

Details premium calculation, adjustment mechanisms, and commission structures. These terms directly affect the economic outcome of the reinsurance relationship.

Lesson 1 • Pricing Methods for Excess of Loss Treaties

Uses burning cost, exposure rating, and ILF methods to price XL layers. Demonstrates how layer position affects expected loss and required premium.

Lesson 2 • Underwriting Judgment and Risk Selection

Integrates qualitative factors with quantitative pricing to make underwriting decisions. Develops the judgment needed to accept, decline, or modify terms.

Lesson 3 • Catastrophe Pricing Fundamentals

Introduces probabilistic cat model outputs and their use in pricing cat XL layers. Connects modeled loss metrics to reinsurance rate adequacy assessment.

Lesson 4 • Underwriting Information and Submission Analysis

Identifies the data required to evaluate a reinsurance submission accurately. Quality data assessment is the foundation of sound pricing and risk selection.

Lesson 1 • Claims Reporting and Notification

Establishes the cedent's obligations to report losses and the reinsurer's response process. Timely and accurate notification is critical to preserving recovery rights.

Lesson 2 • Large Loss and Catastrophe Claims Handling

Addresses the unique challenges of managing high-severity and event-driven losses. Catastrophe claims require coordinated, rapid response across multiple treaties.

Lesson 3 • Claims Validation and Coverage Analysis

Applies contract terms to determine whether a reported loss is covered and recoverable. Coverage analysis prevents improper payments and protects reinsurer interests.

Lesson 4 • Reinsurance Recovery Calculation

Demonstrates how to calculate net recoveries under proportional and XL structures. Accurate recovery calculation directly affects cedent cash flow and financial results.

Lesson 1 • Reinsurance Recoverables and Credit Risk

Addresses the recognition, aging, and impairment of reinsurance receivables. Uncollectible recoverables represent a material financial risk to cedents.

Lesson 2 • Regulatory Reporting and Solvency Metrics

Covers statutory financial statement schedules and solvency capital requirements. Regulatory reporting accuracy is mandatory for licensing and market access.

Lesson 3 • Reinsurance Accounting Fundamentals

Introduces the accounting entries for ceded premium, loss recoveries, and commissions. Correct accounting treatment is essential for financial statement integrity.

Lesson 4 • Premium Accounting and Reconciliation

Covers the calculation and settlement of treaty premiums and adjustments. Reconciliation processes prevent disputes and ensure accurate cash flows.

Lesson 1 • Reinsurance Program Design for Cat Risk

Applies cat model outputs to structure cat XL towers and aggregate covers. Program design balances protection adequacy against reinsurance cost.

Lesson 2 • Catastrophe Risk Fundamentals

Defines natural and man-made catastrophe perils and their loss characteristics. Understanding peril behavior is prerequisite to effective exposure management.

Lesson 3 • Exposure Data Management

Covers the collection, geocoding, and quality control of property exposure data. Accurate exposure data is the single largest driver of model output quality.

Lesson 4 • Catastrophe Modeling Methodology

Explains the four components of a cat model and how they generate loss estimates. Model literacy enables informed use and critical evaluation of model outputs.

Lesson 1 • Reinsurance Needs Analysis

Assesses an insurer's risk appetite, capital position, and exposure profile to define reinsurance objectives. Needs analysis is the starting point for every program design.

Lesson 2 • Renewal Process and Negotiation

Manages the annual renewal cycle from submission preparation through binding. Effective negotiation secures optimal terms in competitive and hard market conditions.

Lesson 3 • Program Performance Monitoring and Governance

Tracks reinsurance program performance against objectives and reports to senior management. Governance ensures accountability and continuous program improvement.

Lesson 4 • Reinsurer Selection and Panel Management

Establishes criteria for selecting, diversifying, and monitoring the reinsurer panel. Panel quality directly affects security, capacity, and claims payment reliability.