Reinsurance treaties

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

The assessment

The certification is validated by a multiple-choice assessment, unproctored and with a public answer key. It gates delivery of the certificate at the threshold below; it does not prove knowledge under supervision.

26 questions·threshold 70 %

• Validation quiz, reinsurance treaties

What this certification does not prove

This certification 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.