faq

DEFINITIONS OF REINSURANCE

LEGAL:

Reinsurance is a contract whereby one party, the assignor or insurance company, moved to another reinsurer, or part of a risk assumed by the insurance policy holder.

FUNCTIONALIST:

Reinsurance is a system whereby the insurer reduces its responsibility for a risk taken or will take, downloading that part which exceeds their financial or technical capabilities, in another called reinsurers

PROPORTIONAL REINSURANCE

The Seller and the Reinsurer agree on a percentage of the premium and the risk of contract commitments of the policy, namely:

The sum insured: the% of risk assumed by each of the parties.

The percentage of the premium initially paid by the insured and the reinsurer will receive while this gives the insurer a reinsurance commission.

The cost of claims: the percentage of the cost of claims, that are attributable to the reinsurer if the accident occurs.

1. Contract fee part: another form of proportional contract, establishing a specific% of all risks, the insurer or take more classes. Percentage that defines the premium that corresponds to the insurer as part of the risk to take.

The tax is part of the risks ceded as a whole, the insurer can not choose and not sagging.

2. Contract surplus: surplus proportional contract the reinsurer agrees to assume a certain% of claims in specific classes or when they exceed certain amounts. Calculate with little room for error the volume of maximum losses that can assume the premiums collected by all of the risks.

3. Contract compulsory optional: proportional reinsurance where the transferor may transfer risk and the reinsurer is obliged to accept them. Used for example in industrial hazards of large amounts of higher and risks. Has strong imbalances and vulnerable to losses of great magnitude. It costs a lot to find reinsurers, who are willing to share the risks.

4. The optional add-mandatory proportional contracts: are compulsory facultative reinsurance complement any proportional reinsurance.

NON PROPORTIONAL REINSURANCE

The base is not a risk, but the casualty. The reinsurer assumes part of the costs of claims that exceed certain values, ie, exceeding called "priority". No such risks are shared in proportion, but a guarantee of reinsurance claims that exceed a certain amount of money.

1. Contract excess risk loss: Passed a stipulated amount, ie the excess, the reinsurer assumes an incident that occurs in a special risk. Limit risk.

2. Excess Loss Contract by Event: For example, in an incident that establishes an accumulation of individual risks insured with the same company. That is, the excess may be by: a catastrophe or an earthquake or flood, etc..

3. Stop loss contract (stop loss): The reinsurer assumes the incident, when the accident year cumulative excess insurers certain amount or a% of the premiums collected.

Depending on the line of business in which the branches commonly requested reinsurance backups are:

PROPERTY (Property)

• Fire and Earthquake

• All Risk Equipment and Machinery

• Contractors All Risks

• Mounting

• Machinery Breakdown

• Terrorism

• Oil & Gas

• Cars

MARINE (Maritime)

• Transportation

• Helmet

• P & I

• Port Liability

CASUALTY (Heritage)

• Global Banking Policy

• CRIME INSURANCE

• Policies for Stockbroker

• Transportation Securities

• D & O (Directors and Managers)

• Computer Crimes

• All Risks Museums and Art Works

• All Risks Jewelry

• Compliance (Bonds)

LIFE & HEALTH (Life and Health)

• Group Life

• Group Life disencumbrance

• Personal Accident

• Health

• Unemployment

Undoubtedly reinsurance is an invaluable ally of assurance and thanks to him, any insurer can expect to participate in any insurance program regardless of size or ability that you have.

The greatest benefit of reinsurance is to protect the assets of insurers, as this can be very limited to the responsibilities assumed by its insurance policies. A company with an adequate reinsurance program can ensure the greatest risks without exposing her equity. While the client reinsurers have better protection because its insurable interest has spread and time of submission of any claim, sufficient funds will be obtained in a prompt and timely manner to compensate the loss.

The reinsurance contract is independent governing the insurance policy, however the latter must accept the terms and conditions have been negotiated with the Reinsurer, same to be forwarded to the original insured with regard to technical topics.

COMBINED is an independent reinsurance intermediary knowledge of the insurance market with Andean and Central America, which has access to major international reinsurance markets and also with renowned professionals, these facts that make the best and most obvious alternative in achieving reinsurance terms and conditions.