Introduction – Nature of reinsurance - Brief historical background - Functions of reinsurance forms of reinsurance - Facultative and Treaty - Methods of reinsurance proportional – Surplus, - Quota share -FAC obligatory commission non-proportional - Stop loss/ aggregate excess of loss- Cost/ rating, Law relating to reinsurance contracts- Fundamentals of contract law as applicable to reinsurance - Reinsurance contract wordings- Common clauses in reinsurance contracts- Certain special clauses- Reinsurance documentation – Slip – Cover note – Agreement certain special clauses. retentions- Setting retentions – General considerations - Common factors that influence retention - special factors for - Property reinsurance - Accident/ liability reinsurance - Marine and aviation reinsurance - Basics of life reassurance. reinsurance programme – Designing - Programme design – Analyzing reinsurance needs- Needs based on business strategy – Financial needs- needs based on management style and attitude- Construction of reinsurance programme - Reinsurance – Distributing the programme arrangements-negotiation and placement of reinsurance – Direct - Direct placement- Placement through intermediaries- Advantages and disadvantages of direct placement and dealing
through intermediaries. reinsurance accounting- Special nature of reinsurance accounts- Taxation aspects- Exchange control regulations. Reinsurance markets - Special characteristics of certain important markets- Lloyd`s-reinsurance exchanges- Pools. Reinsurance financial security- Importance - Managing re- insurer security- Selecting re- insurers- Establishing criteria for security evaluation- Financial strength ratings- Major rating agencies. Alternatives to reinsurance - New forms of reinsurance - Finite risk/ Financial reinsurance - Reinsurance futures- Securitization of reinsurance contracts- New markets- Impact of captives and high self retention. Inward reinsurance business- Need for inward business- Objectives - Business strategy- Retrocession arrangements- Reciprocal trading. Importance of statistics in reinsurance - Gathering and analysing statistics- Use of communication and information technology- Organisation of reinsurance department appendices: IRDA regulations - Life reinsurance - General reinsurance - Specimen reinsurance slip wording- Calculation of solvency margin – Life business- Calculation of solvency margin – Non-life business - Glossary of reinsurance terms - Credit rating – Definitions.
