再保险基础知识-美国俄克拉荷马州协会

Reinsurance101:HowitWorksandtheImpactontheMarketplaceKathleenA.McCulloughAssociateProfessorandStateFarmProfessorFloridaStateUniversity2012OklahomaDomesticConferenceMay23,2012WhatYouNeedtoKnow•Whatisreinsurance?•Howbigisthemarketplace?•Whobuysreinsuranceandwhy?•Aretheredifferenttypesofreinsurance?•Whatistheimpactofreinsurancebeyondinsurancecompanies?•Whataboutcatastrophesandreinsurance?•Whataretheregulatoryissues?WhatisReinsurance?•Classicdefinition:–Insuranceforinsurancecompanies•“Thetransferofinsuranceriskfromoneinsurertoanotherthroughacontractualagreementunderwhichoneinsurer(thereinsurer)agrees,inreturnforareinsurancepremium,toindemnifyanotherinsurer(theprimaryinsurer)forsomeorallofthefinancialconsequencesofcertainlossexposurescoveredbytheprimaryinsurer’spolicies.”–Harrison,2006SizeoftheReinsuranceMarket39%4%33%21%3%WorldNon-LifeReinsuranceMarket(USD152B)NorthAmericaLatinAmericaEuropeAsiaandOceaniaAfricaSwissRe2011WhoaretheLargestReinsurers?WhoaretheLargestReinsurersofU.S.Business?TheLargestReinsuranceBrokers?WhoBuysReinsurance?•Primaryinsurers•Otherreinsurers(retrocession)PrimaryInsurer(Cedant)Reinsurer(s)Reinsurer(s)ReinsuranceRetrocessionWhyBuyReinsurance?•Reducetheriskofcatastropheexposure•Helpspreadrisk•StabilizelossexperienceWhyBuyReinsurance?(cont.)•Increasecapacity•Capital/surplusreliefWhyBuyReinsurance?(cont.)•Withdrawfromamarket•GainreinsurersexpertiseWhoDoInsurersBuyReinsuranceFrom?•AffiliatedReinsurers–Domestic–Foreign•UnaffiliatedReinsurers–Domestic–Foreign•Other–PoolsPremiumsCededbyUSP&CIndustry4%33%30%8%25%DomesticAffiliatedForeignAffiliatedDomesticUnaffiliatedPoolsForeignUnaffiliatedSNLFinancial–2010dataWheredoUSP&CFirmsCedeto?TypesofReinsurance•TreatyorObligatoryReinsurance–Reinsureragreestocoveralllossesthatfallwithinthetreaty–Anentireportfolioofrisksisinvolved–OftenthebasisofareinsuranceprogramTypesofReinsurance(cont.)•Facultative–SpecificExposure–Casebycase–IndividualofferandacceptanceofrisksTypesofReinsurance(cont.)•Pro-rata(proportionalreinsurance)–Insurance,premium,andlossesaredividedbetweentheprimaryinsurerandreinsurerinagreedproportions–Quotasharevs.surplusshareTypesofReinsurance(cont.)•Excessofloss(non-proportional)–Reinsurerpaysportionofalossthatexceedstheprimaryinsurer’sretentionuptothereinsurancelimit–Ex.$900,000xs$100,000foreachandeveryloss–PerriskvsPeroccurrencevsAggregateexcessSortingoutTypesofReinsuranceTypeofReinsuranceStabilizeLossExperienceImproveLarge-LineCapacityProvideCatastropheProtectionProvideSurplusReliefMainPurposeProrataquotashareNoYesNoYesSurplusreliefProratesurplusshareNoYesNoYesLarge-linecapacityandsomesurplusreliefExcessoflossperriskorperpolicyYesYesYes,butnotpurchasedforthisNoLarge-linecapacityandstabilizelossesExcessoflossperoccurrenceYes(toanextent)NoYesNoProtectagainstsingleeventcatlossesAggregateexcessoflossYesYes,butnotpurchasedforthisYesNoTostabilizelossexperienceHarrison,2006ImpactofReinsurance•Allowsinsurancetobeofferedmorebroadly•Provideslong-termcapitaltotheeconomy•InformationReinsuranceandCatastrophesReinsuranceandCatastrophesReinsuranceandCatastrophesReinsuresandCatastrophesKeyRegulatoryIssues•CollateralizationofForeignReinsurance–CreditforReinsuranceModelLaw•Whatisit?–ModelLawthatallowsstateregulatorsflexibilityregardingcollateralrequirementsforforeignreinsurers–Priorrequirementswere100%collateralization•Argumentsforandagainst?KeyRegulatoryIssues(cont.)–CollateralizationofForeignReinsurance(cont.)•Whatarethekeychanges?–Stateauthoritytocertifyreinsurersorrecognizecertification–Statesabilitytoassignratingandvarycollateralizationrequirements•Now0to100%basedonsecurityrating–RequiresInsurernotifystatecommissionerswhentheamounttheyexpecttorecoverhitscertainthresholds–ContinuedevaluationandsupportfromNAICKeyRegulatoryIssues(cont.)•NationalFloodInsuranceProgram(NFIP)–RecentextensionofNFIP–Increaseduseofprivatereinsurance•ImplicationsofDodd-FrankAct–Non-admittedandReinsuranceReformAct(NRRA)•NRRApreemptstheextraterritorialapplicationofstatecreditforreinsurancelawsKeyRegulatoryIssues(cont.)•InternationalRegulatoryandAccountingStandards•Securitization–CatBonds,Sidecars,andmoreKeyRegulatoryIssues(cont.)KeyRegulatoryIssues(cont.)•CatastrophePools/Other(Quasi-)GovernmentmechanismsThankYou