Presented by
Falconbury
Understanding the Reinsurance Industry In-house Training
This reinsurance training course is an intensive but practical two-day programme that will enhance your knowledge of how the reinsurance industry works, how your role impacts the business, and give you a greater understanding of the industry's purpose and function.
★★★★★ "Content was very informative, relevant and for the majority of the time was clear. I think it could ... more"
- Format: Live online
- CPD: 12 hours for your records
- Certificate of completion
Course overview
Put simply, reinsurance is best thought of as “insurance for insurance companies,” a way for a primary insurer to protect against unforeseen or extraordinary losses. It serves to limit liability on specific risks, to increase individual insurers’ capacity and to share liability when losses overwhelm the primary insurer’s resources. It also helps insurers stabilize their business in the face of the wide swings in profit and loss margins inherent in the insurance business.
However, the reinsurance industry is much more complex than one statement, professionals working within the industry are tending to specialise in one area and lose touch with the trends and challenges faced by this global business as a whole. Whether you are new to the industry or need to get back in touch with the dynamics of the industry as a whole, then this reinsurance training course is for you.
This training course is part of our Insurance & Reinsurance Contracts Training Courses collection which covers up to the minute issues and the latest legal developments.
Why you should attend
The experienced faculty will demystify all aspects of the reinsurance industry that participants might be new to, unfamiliar with or have lost touch with.
Topics covered include:
- Part 1: The building blocks – understand the need for reinsurance and its relevance to your role
- Part 2: The reinsurance market – get-to-grips with the role of the reinsurance market and how it works
- Part 3: The legal and regulatory framework – build your knowledge of how the industry is controlled and regulated
- Part 4: Practical applications – Demystify the terminology and activities that are specific to the insurance industry
Who should attend?
This programme has been designed specifically for:
- Reinsurance company employees
- Reinsurance broker company employees
- Insurance and reinsurance company professionals
- Lawyers in private practice
- Regulators
- Brokers
- Insurance and reinsurance consultants and advisers
Plus, those who have recently joined the reinsurance industry and suppliers to the industry including software, recruitment and accountancy personnel.
The Understanding the Reinsurance Industry course will cover:
Introduction
- Why is understanding reinsurance important?
- Risk management for insurers
- The uses and benefits of reinsurance
- How reinsurance interacts with an insurer’s business activities
PART 1: THE BUILDING BLOCKS
What is reinsurance? Its purposes and functions
- Introduction of basic concepts
- Concepts of sharing/mitigating/laying-off/risk
- Methods and types (proportional and x/l, treaty and facultative)
- Types and functions of reinsurance treaties
- How proportional and x/l work
- Their different uses and purposes
- The role of the Cedant company: what protection and capital support do you need; risk spreading
Facultative reinsurance - PRACTICAL WORKSHOP (A)
- Concept – ‘individual risks’
- Premium calculation proportional and x/l (two methods)
- ‘as original’
- Worked exercises:premium/ rating and claims allocation
- Advantages and disadvantages - development of the treaty
Treaty reinsurance - PRACTICAL WORKSHOP (B)
- Constructing a simple; proportional reinsurance treaty; elements of a bordereau
- Balance of a portfolio/treaty/excess-of-loss contract
- Worked exercise: setting cessions; creating bordereau; accounting
- Excess-of loss treaties/contracts: types of contract
- Exposure to the treaty; setting the deductible and limit; layers of coverage
- Rating (exposure or burning cost basis; rate-on-line); reinstatements
- Operation – how claims recoveries work; some claim calculation exercises
Underwriting reinsurance
- Main tasks and challenges of the reinsurance underwriter
- Setting the retention
- “Technical rates”; actuaries, cat modellers, statisticians and other animals
- Risk appetite
- Rating methods in detail
- Underwriting guidelines
- The underwriter’s risk assessment process; the reinsurance information
- “Know your customer”
- Buyer’s perspective
Questions
Reinsurance agreements
- Why have a wording?
- The London Market Contract
- Key drafting concepts (construction, interpretation, implied terms)
- Facultative certificates; “as original”
- Nature of the reinsurance contract
- Incorporation of clauses
- Key clauses (follow, ultimate net loss, warranties and conditions)
- Law and jurisdiction clauses
- Other key clauses; the structure of a typical wording
PART 2: THE REINSURANCE MARKET
Main world markets
- Difference between broker and direct markets
- London and Lloyd’s market
- USA (New York; California)
- SE Asia
- Continental Europe
Market specialists in arranging reinsurance: brokers and underwriter
- The chain of the reinsurance business
- Role of the broker vs direct placings
- Market practice and agency rules
- Duties of reinsurance brokers
- Role of the underwriter
The reinsurance captive market
- Definitions
- History
- Locations
- “Captive” reinsurers/industry mutuals/captive managers
- Application of reinsurance recoveries
Alternative risk transfer mechanisms
- Reinsurance pools
- What is a pool and how does it work?
- Principal-to-principal implications and accounting arrangements
- Examples: Pool Re, Flood Re, Florida Windstorm Underwriting Association
- Insurance linked securities and alternative risk transfer, catastrophe bonds
- Distinction from traditional reinsurance
- Does the reinsured have to prove a loss?
Questions
Introduction and recap of day one
PART 3: LEGAL AND REGULATORY FRAMEWORK
The law of reinsurance - introduction
- Development of the law of reinsurance; predominance of English reinsurance law and English jurisdiction
- Sources of English law; The UK Insurance Act 2015 and beyond
- Common law and civil law jurisdictions
- Issues that commonly give rise to disputes
- Rules for choice of law and jurisdiction, international enforcement of judgements and awards
- Construction of reinsurance contracts – the courts’ approach
The regulation of reinsurance
- Regulation and solvency
- UK bifurcated (Twin Peak) regulation (prudential vs consumer protection)
- EU: Solvency II/Capital requirements
- Nigerian and other sub-Saharan approaches
- International aspects; worldwide convergence
Developments post Brexit
- UK licences to trade in EU countries and vice versa;Lloyd’s Brussels; Lloyd’s Insurance Co Ltd
- Continued centrality of London?
- Proposed changes to prudential regulation
- New FCA approach
- Judgements of ECJ
Questions
PART 4: PRACTICAL APPLICATIONS
Reinsurance claims management
- Claim management - what, why and how
- Questions of non-disclosure/misrepresentation/underwriting information
- Litigation management from a claims perspective
- In-house counsel and independent lawyers
- Use of Inspections of Records Clause
Claims reserving
- Why reserve? Importance in technical account
- Case reserves
- Using information from reinsureds
- What is IBNR (long and short tail needs)? Approaches to estimation
PRACTICAL EXERCISE: Simple “link-ratio” calculation of IBNR
Run-off and commutations
- What is run-off?
- Different legal run-off vehicles
- Part VII Transfers – latest developments
- Loss portfolio transfers
- What are Schemes of Arrangement?
- Commutations explained
Dealing with reinsurance disputes
- Litigation or arbitration? International disputes
- Jurisdiction and choice of law
- Principles and procedures for reinsurance arbitrations
- Alternative Dispute Resolution (including conciliation and mediation)
- The Bermuda Form
- Major dispute resolution centres (England; New York; Dubai; Singapore)
Final questions and summary
Phillippa Rowe
Phillippa Ross & Co
Phillippa Rowe, senior partner of independent reinsurance consultants Phillippa Ross & Co., has over 30 years experience of insurance and reinsurance claims in Lloyd’s and the London market and internationally. She began her reinsurance career with 15 years with the Kiln group at Lloyd’s. She currently acts as arbitrator, mediator, expert witness and technical consultant in a wide range of claims, wordings and market practice matters and writes, lectures and provides training courses on similar subjects.
Simon Cooper
Ince & Co
Simon Cooper is a Consultant at Ince & Co LLP. He has experience of advising clients in the London and international insurance and reinsurance markets and has extensive experience of acting in large scale disputes in the English Commercial Court and appellate Courts, in ad hoc arbitrations and in overseas jurisdictions. Many of these disputes have involved multiple parties and complex issues of fact and law. Simon also has comprehensive experience of mediation and other forms of Alternative Dispute Resolution. Simon’s practice focuses on reinsurance, financial lines and professional indemnity business but has included most areas of non-marine business.
Richard Cook
PICC Solutions
Richard Cook is
Managing Director of PICC Solutions. He was previously Head of
Technical Adjusting at Charles
Taylor Insurance Services and Head of Reinsurance at Xchanging Claims
Services. He has over 37 years insurance claims experience in the
Lloyd’s and London Insurance Company Market; joining Xchanging from a
specialist Reinsurance Lloyd’s Managing Agency, where
he was the Group Claims Manager. He has served on numerous major London
Market claims committees and has appeared as a Fact Witness in coverage
litigation before various United States Federal and State Courts. He
has acted as an Expert Witness on London Market
Claims Practice in the United States Federal Court in New York and in
the High Court in London.
David Brackenbury
David Brackenbury Associates
David Brackenbury has been working in the Lloyd’s Market since 1980. A Broker for 26 years, in 2006, David set up David Brackenbury Associates, a consultancy that brings experts in loss adjusting, forensic accounting, audit, compliance and investigative services from around the world to the Lloyd’s, London and European insurance marketplace. David is a Board Member of the Association of Insurance and Reinsurance Service Providers (AIRSP) and is a Practicing Associate of the Academy of Experts. David has been involved throughout his career with the negotiation and settlement of losses in the Lloyd’s, London and international insurance and reinsurance markets.
Reviews of IPI's Understanding the Reinsurance Industry training course
Easy to understand, even for a non-English specialist like me!
Apr 28 2016
Michael Foerster 
Builders Insurance Holdings S.A.
Apr 29 2015
Great course but the it's length could to be extended
Khalid Alhusain 
Export Credit Insurance Specialist , Saudi Fund for Development- Saudi Export Program
Apr 29 2014
Content was very informative, relevant and for the majority of the time was clear. I think it could benefit from some areas being explained in more simple terms.
Gemma Manning 
BAI Claims Services Limited
Apr 29 2014
Easy to follow apart from a few technical areas (legislation) which were harder to understand. Speakers were friendly, interactive and spoke clearly.
Lucy Henry
Claims Technician, Amlin plc
Apr 29 2014
Good quality content. Well and clearly presented.
Paul Lavender
Finance Director, Elite Insurance Co Ltd
Apr 30 2013
Good job, presentation was good, maybe some of the speakers could speak more slowly.
Kristian Egebjerg Simoni 
Beta re
Apr 30 2013
Good. Some speakers were more lively then others. Most of the contents was relevant.
Christoffer Olsen
Beta Re GmbH
United Kingdom
- Admiral Group Plc
- Amlin plc
- ASCOT UNDERWRITING LTD
- BAI Claims Services Limited
- Bell & Clements
- Bell & Clements Ltd
- Canopius Services Ltd
- Clyde & Co LLP
- Corporation of Lloyd's
- Crispin Speers and Partners
- CSC Financial Services
- Elite Insurance Co Ltd
- Elite Insurance Company Limited
- Execution Noble Ltd
- Freshfields Bruckhaus Deringer
- Hiscox
- Hiscox Insurance Co Ltd
- Lloyd's
- Lloyd's of London
- MILLER INSURANCE ASSOCIATES
- Miller Insurance Services LLP
- Novae Group plc
- Pacific Life Re Limited
- PRO Insurance Solutions
- PRO Insurance Solutions Ltd
- RFIB Group Ltd
- Sapiens
- SCOR SE
- SHIPOWNERSCLUB
- Sidley Austin LLP, Solicitors
- Towers Watson (Re) Insurance Brokers Ltd
- TransRe
- Twelve Capital
Switzerland
- Aspen Insurance Ltd
- Aspen Re
- Axis Re
- Axis Re Europe
- LGT Capital Management Ltd.
- LGT ILS Partners Ltd.
- Shell Finance Switzerland
Denmark
- Alpha Sales Group
- Beta re
- Beta Re GmbH
- Horten
Luxembourg
- Builders Insurance Holdings S.A.
- Builders Reinsurance S.A.
- Builders' Credit Reinsurance Company SA
Germany
- Guy Carpenter & Company GmbH
- HDI Global Specialty SE HDI AG
Ireland
- Ffh Management
- FFH Management Services
Sweden
- Finansinspektionen
- Lansforsakringar AB
Austria
- Garant Versicherungs AG
France
- SCOR SE
Italy
- Financial Insurance Company Ltd
Latvia
- The Motor Insurers' Bureau of Latvia
Philippines
- Arch Global Services
Poland
- Polskie Towarzystwo Reasekuracji SA
Russia
- Ingosstrakh ONDD Credit Insurance LLC
Saudi Arabia
- Saudi Fund for Development- Saudi Export Program
Spain
- AGCS
Run Understanding the Reinsurance Industry Live online for your team
2 days
Typical duration
Pricing from:
- GBP 800
- Per attendee
- Course tailored to your requirements
- At your choice of location, or online
We can customise this course to your requirements and deliver it on an in-house basis for any number of your staff or colleagues.
Contact our in-house training experts Aleksandra Beer and Yesim Nurko to discuss your requirements:
