This fourth edition of the key reinsurance text features completely new chapters on ‘Law and Reinsurance' and 'Retrocession'.
The chapters on ‘Property Risk Excesses', ‘Motor TP and Liability Excesses' and 'Captives and Financial Reinsurance' have also been substantially rewritten.
All other areas of this fine book have been updated to present-day practice.
Author(s): Kiln, Robert J. and Kiln, Stephen
Published: 2001
Binding: Hardback
ISBN 10: 1856091791 ISBN 13: 9781856091794
CONTENTS
Foreword to the 2001 Edition
Foreword to the 1991 Edition
Foreword to the 1986 Edition
Preface to first Edition
Preface to second Edition
Preface to third Edition
Preface to fourth Edition
Robert Kiln Obituary
Letters to Robert Kiln
The Letter answered by Robert
Chapter I Introduction
Chapter II Facultative Proportional Insurance
Introduction
The Reinsurance Policy
Net Retention and How to Broke
Ceding Commission
Net Rate Basis
The Full Reinsurance Clause
Uses and Characteristics
Chapter III Facultative Excess of Loss Reinsurance
Introduction
Claims Co-operation and Claim Control
Uses and Characteristics
Property Excess Facultative Reinsurance
Third Party Facultative Excess Reinsurances
Calculating Premiums
Draft Third Party Wording
Chapter IV Quota Share Reinsurance Treaties
Introduction
The Treaty Wording
Quota Share Treaties
Underwriting Considerations
Profit Commissions
A Typical Example of a Quota Share Treaty
The Surplus Relief Quota Share
The Variable Quota Scheme
Chapter V Surplus Treaties
Introduction
The Treaty Wording
Term and Period
Basis of Cessions
Loss Reports
Earned Premium Basis
Sliding Scale of Commission
Currency
Loss Reserves and Letters of Credit
Property First Surplus Treaty (Wording)
Chapter VI Surplus Treaties - Continued
2nd Surplus Treaties
Facultative Obligatory Treaties
Minimum Retentions
Profit Commissions and Sliding Scales
Sliding Scales
Sliding Scale Commission with Treaties on a Written Basis
General Underwriting Considerations
Reciprocity
Accounts and Claims
Chapter VII Premium Income and Reserves
Premium Income
Written Premium Income
Earned Premium Income
The 24th System
Accounted or Debited Premium Income
Calculation of Unearned Premiums under Pro rata Treaties
Portfolio Transfers
Loss Reserves and Outstanding Loss Portfolios
Who Owns Deposit of Reserves
Bank Guarantees or Letters of Credit
Outstanding Claims Advances (OCA’s)
Outstanding Loss Portfolios
Appendix to Chapter VII
Chapter VIII Catastrophe - Excess of Loss Reinsurance
Introduction
Coinsurance
Loss Occurrence
1999 Hours Clause Review
Minimum Premiums
Reinstatement
Chapter IX Catastrophe - Excess of Loss Contracts
Fixing the Deductible
Fixing the Limit of the Policy
Fixing the Price
Comments 2000
Use of Aggregate Deductibles on Excess Catastrophe Contracts
Multi-year Catastrophe Excess of Loss Contracts
The Financial Markets Response to Traditional Catastrophe Programmes
Chapter X Property Risk Excesses
Introduction
Co-reinsurance
Variable Limits and Deductibles
Practicalities of Underwriting
Ceding Company
The Reinsurer
Factors in Underwriting
Burning Cost Contracts
Loss Cost Rating
Flat Rated Risk Excess Contracts
Other Options
Risks Attaching Versus Loss Occurring During
Application of Risk Excess to Other Lines of Business
Chapter XI Motor and Third Party
Introduction
Robert’s Comment 1997
Ultimate Net Loss and Costs
Indexation
Flat Deductible Increases
Claims-made Basis
Excess Cession Treaties
Professional Indemnity
Liability General Underwriting Considerations
Chapter XII Stop Loss Reinsurance
Introduction
Earned or Written Premium Basis
Deduction of Other Insurances
Advance Payments of Losses
Loss Settlements: Outstanding Losses
Incurred Loss Basis
Past Statistics and Underwriting Practices
Uses of Stop Loss Contracts
Types of Business
Fixing the Deductible
Fixing the Policy Limit
Fixing the Premium
Fixing the Rate
Quota Share/Stop Loss Conversions
Variable Premium Rates
Loss Settlements
Stop Loss on Treaties
Stop Losses on Risk Excesses
Chapter XIII Retrocession
Introduction
The Gearing Effect and the Spiral
Reinsurance of Facultative Accounts
Transmission and Distribution Line Exclusion
Reinsurance of Proportional Portfolios
Underwriting Information Required
Risk on Risk Protection
Underwriting
Retrocessional Catastrophe Excess of Loss
Information Required
Underwriting
Reinsuring a Retrocessional Account
Market Loss Warranty
Chapter XIV Captives, Financial Reinsurances and the Development of Art
Self-insurance
Mutuals
Captives
Risk Retention Groups
Reinsurance of Captive Companies
Captives and Off-shore Islands
Creating “Catastrophe” Reserves
Nature of Reinsurance
Insurance Concepts
Proportional Reinsurance
Non-proportional
Bankers
Rollers or Roll-up Policies
Portfolio Reinsurances
Reinsurance to Close at Lloyd’s RITC
Stop Loss Reinsurance on Run-offs
Time and Distance Policies
1999 Conclusion
Aggregate Excess of Loss Reinsurances Agreement
Chapter XV Insurance Regulations, Solvency of Reinsurers and Loss Reserves
Protection of the Policyholder
Supervision of Reinsurance Operation
Controls for the Protection of Local Insurance and Reinsurance Market
Evaluating a Reinsurers Solvency
Some Methods of Evaluation of Technical Reserves Including I.B.N.R
I.B.N.R. on Special Cases
Checking on Other Peoples Reserves
Chapter XVI The Law and Reinsurance
Chapter XVII Philosophy, Programmes, People
Some Thoughts on Reinsurance Programmes
Reinsurance Operations
Appendix, Asbestos and Pollution
Glossary of Some Reinsurance Terms
Some Abbreviations
Bibliography
Index
