This foundational course presents a comprehensive discussion of the concept of reinsurance and how reinsurance is used in the Property & Casualty insurance industry.

Prerequisites/Advance Preparation
Participants will find it helpful to have an understanding of the Property & Casualty insurance industry and the basics of accounting for premiums, losses, and expenses. These other topics are addressed in our Insurance Concepts Series, of which this course is a part. No advance preparation is required for this self-study.

Learning Objectives

• Define reinsurance
• Distinguish between the five functions of reinsurance
• Differentiate between facultative and treaty reinsurance and proportional and non-proportional reinsurance
• Identify how the common types of reinsurance work and accomplish the different functions of reinsurance
• Identify the principles and concepts that are unique to reinsurance contracts

Outline

• Risk Management
• Definition of Reinsurance
• Functions of Reinsurance
• Forms of Reinsurance
• Types of Reinsurance
• Reinsurance Contracts
• Summary