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Specialization · 2 courses

Reinsurance treaties

FreeFull course, free, no account neededOptionalCertification is paid for at the end, if you want it

Private certification issued by AlgoPolis under its sole authority. It is not registered with France Compétences, in either the RNCP or the specific register, and does not qualify for the French personal training account.

Part of the domain Reinsurance2 hrs a week over 2 weeks

Certificate scope ↓

How a risk is shared between a cedant and its reinsurer, and what that sharing costs. It opens with the decision that precedes everything, treaty or facultative; it then works through the two families of sharing, the one that follows a fraction and the one that follows an amount; and it closes on the three numbers that decide a renewal, the commission, the burning cost and the rate on line, saying each time what they do not measure.

Reinsurance2 courses, about 1 hr 15 each

Who it is for

Treaty underwriters, reinsurance actuaries, reinsurance brokers, heads of outwards reinsurance, large-loss handlers, technical controllers and solvency analysts.

What you will be able to do

  • Separate a treaty cession from a facultative one, and say which of the two binds the reinsurer before it knows the risk.
  • Place a risk outside a treaty's scope and name what is left to place risk by risk.
  • Compute what a cedant keeps and what it cedes on a given loss, first under a quota share, then under a surplus treaty.
  • Read a table of lines and say how many lines a risk consumes, then derive the cession rate that applies to it.
  • Place an attachment and a limit on a quantified loss, and say what remains with the cedant above the layer.
  • Separate a working layer from a cat layer by what each one sees, not by its rank in the program.
  • State what a reinstatement clause makes available, at what price, and what happens once it is exhausted.
  • Separate a per-risk excess of loss from a per-event one, and say what the hours clause decides between them.
  • Compute a cedant's recovery depending on whether two losses aggregate within one hours clause window or in two distinct ones.
  • State why a stop loss is hard to place, and name what the reinsurer requires in return.
  • Separate a flat ceding commission from a sliding scale, and compute what each returns to the cedant on the same result.
  • Compute a profit commission from a technical account, naming the charges the reinsurer takes before any balance appears.
  • Compute a raw burning cost over five years, then name the three corrections without which it understates the charge.
  • Separate a burning cost from a rate, and say what the loading adds between the two.
  • Compute a rate on line and its theoretical payback, and say why the latter does not measure risk.
  • Compare two layers by their rate on line and name what that comparison does not say about their exposure.

The syllabus

Who carries what, and at what price?

Course · 11 modules · about 1 hr 30

  1. 01Treaty and facultative, or what binds before you know · 8 min of reading
  2. 02Quota share, or the split that never looks at the loss · 7 min of reading
  3. 03Surplus, or the split that changes with every risk · 7 min of reading
  4. 04Excess of loss: attachment, limit, and what reinstates · 8 min of reading
  5. 05Per risk or per event, and the hour that decides · 7 min of reading
  6. 06Stop loss, or the protection hardest to obtain · 7 min of reading
  7. 07Ceding commission and profit commission · 7 min of reading
  8. 08Burning cost, and the three corrections without which it lies · 8 min of reading
  9. 09Rate on line, payback, and what they do not measure · 8 min of reading
  10. 10The hours clause, or who decides what counts as one event · 10 min of reading
  11. 11Reinstatement, or what is left of the program after the first loss · 10 min of reading

Validation

Each course is validated by its questionnaire: a few easy questions, open to all, at the pass mark below. The specialization is validated once all its courses are, with no further questionnaire at this level. This check, unproctored and with a public answer key, does not prove knowledge under supervision.

6 questions per coursePass mark: 5 out of 6

What this specialization does not prove

This program attests to an understanding of how reinsurance treaties work, of the sharing they organize and of the quantities used to price them. It attests to no underwriting or placement experience, no professional authorization, and it prepares for no regulatory examination.

Your progress

A course counts once its questionnaire is passed. Your progress is kept in this browser.

0 of 2 courses passed

  1. Who carries what, and at what price?To do · 6 questions, 5 minutes
  2. What does the contract say, and who pays when the parties disagree?To do · 6 questions, 5 minutes

The certificate will be available soon.

What the Academy is, and what it is not

Private certification issued by AlgoPolis under its sole authority. It is not registered with France Compétences, in either the RNCP or the specific register, and does not qualify for the French personal training account.

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