Cover Talk: An introduction to reinsurance - what is reinsurance and why should you buy it?

Have you ever wondered what is reinsurance and why it plays such a vital role in the insurance industry? In this insightful webinar, our speaker Andrew Tobin defines reinsurance as insurance purchased by an insurer—a strategic tool that helps insurers spread risk globally and maintain financial stability. In this session, we explore the two main ways reinsurance is placed: ⦁ Facultative reinsurance – used for individual or one-off large risks, with each deal negotiated separately ⦁ Treaty reinsurance – an automatic and efficient transfer of risk for volumes of business, typically negotiated annually Next, we unravel the difference between proportional and non-proportional reinsurance: ⦁ Proportional reinsurance, such as a quota share treaty, involves sharing premiums and claims in agreed proportions ⦁ Non-proportional reinsurance, like excess of loss reinsurance, activates only after the insurer’s retention is exhausted, offering protection against major events Finally, we briefly touch on common areas of dispute, particularly concerning aggregation in excess of loss scenarios. For more information on our insurance sector, visit https://www.mills-reeve.com/sectors/i.... #insurance #reinsurance