Reinsurance in Practice, 4th Edition

Published Date

September 2001

Reinsurance in Practice, 4th Edition

(Excludes any applicable taxes)

Latest edition of key text on reinsurance


No. OF PAGES: 471

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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.


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


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


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


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


The Treaty Wording

Term and Period

Basis of Cessions

Loss Reports

Earned Premium Basis

Sliding Scale of Commission


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


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



Loss Occurrence

1999 Hours Clause Review

Minimum Premiums


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



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


Robert's Comment 1997

Ultimate Net Loss and Costs


Flat Deductible Increases

Claims-made Basis

Excess Cession Treaties

Professional Indemnity

Liability General Underwriting Considerations

Chapter XII   Stop Loss Reinsurance


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


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


Retrocessional Catastrophe Excess of Loss

Information Required


Reinsuring a Retrocessional Account

Market Loss Warranty

Chapter XIV   Captives, Financial Reinsurances and the Development of Art




Risk Retention Groups

Reinsurance of Captive Companies

Captives and Off-shore Islands

Creating "Catastrophe" Reserves

Nature of Reinsurance

Insurance Concepts

Proportional Reinsurance



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



Title: Reinsurance in Practice, 4th Edition
Number of Pages: 471
Product Code: 4405Q022
ISBN: ISBN 13: 978-1-85609-179-4 (9781856091794), ISBN 10: 1-85609-179-1 (1856091791)
Published Date: September 2001
Binding Format: Hardback
Book Height: 250 mm
Book Width: 170 mm
Book Spine: 30 mm
Weight: 1.20 kg

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