Reinsurance is an international, multi-billion dollar industry that is vital to the financial stability of all types of insurance company. It enables insurance companies worldwide to provide insurance against risks that they otherwise would not be able to accept safely. It operates by transferring to another insurer (known as a reinsurer) some of the liabilities accepted under the insurance contracts an insurer has written.
Reinsurance is seen by many in the insurance industry as a back office operation that
lies outside their own work experience. The object of this book is to explain as simply as possible the fundamental principles and practice of non-life reinsurance.
There are many facets to the subject. A full understanding of sound reinsurance practice
requires a knowledge of the various forms of reinsurance contract, the law relating
thereto, how contracts are underwritten and the markets for reinsurance business.
However, it is not a static subject. Like most financial services, reinsurance has been
subject to many changes in recent years, in response to economic, environmental,
political, technological, legal and other developments. Such changes explain the
emergence of alternative risk carriers and products have been developed to compete
with and complement traditional reinsurance products as risks, especially catastrophe
risks, have mushroomed in size.
This book is essential for Insurance practitioners and advisers who need an introduction to the fundamental principles and practice of reinsurance.
Table of Contents
Basic features of reinsurance
Types of reinsurance
Application to different classes of insurance
The underwriting and pricing of proportional reinsurance
The underwriting and pricing of non-proportional reinsurance
Accounting and deposits
ART and reinsurance
Professor R.L. Carter OBE, BSc (Econ), D.Phil, FCII, FIRM
Emeritus Professor of Insurance Studies, University of Nottingham. Started his career with the Norwich Union Fire Insurance Society, then became Assistant Insurance Manager for the Dunlop Rubber Co Ltd. In 1963 he moved into education as a Lecturer in Insurance and Economics at Brighton College of Technology (now Brighton University). In 1969 he was appointed Lecturer in Industrial Economics at the University of Nottingham, subsequently being promoted to Senior Lecturer. In 1975 he was appointed the Norwich Union Professor of Insurance Studies, a post he held until he retired in 1990. He has lectured around the world and acted as a consultant to the Association of British Insurers, Lloyd's, the OECD, the World Bank, and other bodies. He is the author of many books and articles on insurance, reinsurance and risk management, including textbooks for the chartered Insurance Institute. He was awarded an OBE in 1991 for services to insurance education and the insurance industry.