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Falconbury

Understanding the Reinsurance Industry Training Course

This intensive but practical two-day programme will enhance your knowledge of how the reinsurance industry works, how your role impacts the business, and give you a greater understanding of the industries purpose and function.

★★★★★ "Content was very informative, relevant and for the majority of the time was clear. I think it could ... more"

23-24 Feb 2023
+ 2 more dates

Need help?  Enrol or reserve

  • Format: Live online, Classroom
  • 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 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 programme is for you.

Why you should attend

The experienced faculty will demystify all aspects of the 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 it’s 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.

Enrol or reserve

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

Enrol or reserve

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.

More details

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.

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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.

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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.

More details

Book Understanding the Reinsurance Industry Live online/Classroom training

NEW higher discounts for multiple bookings - bring your colleagues to make your training budget go further:

  • 30% off the 2nd delegate*
  • 40% off the 3rd delegate*
  • 50% off the 4th delegate*

Please contact us for pricing if you are interested in booking 5 or more delegates

23-24 Feb 2023

Live online

09:30-17:30 UK (London) (UTC+00)
10:30-18:30 Paris (UTC+01)
04:30-12:30 New York (UTC-05)
Course code 12829

  • GBP 999 1,199
  • EUR 1,439 1,719
  • USD 1,647 1,959

Until 19 Jan

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Not ready to book yet?

for 7 days, no obligation

6-7 Jun 2023

Classroom
Rembrandt Hotel
London

09:00-17:30 UK (London)
Course code 12831

  • GBP 1,199 1,399
  • EUR 1,729 2,009
  • USD 1,977 2,289

Until 02 May

  • 2 days classroom-based training
  • Meet presenters and fellow attendees in person
  • Lunch and refreshments provided
  • Download documentation and certification of completion
  • Fair transfer and cancellation policy

View basket 

 
Not ready to book yet?

for 7 days, no obligation

11-12 Oct 2023

Live online

09:30-17:30 UK (London) (UTC+01)
10:30-18:30 Paris (UTC+02)
04:30-12:30 New York (UTC-04)
Course code 12830

  • GBP 999 1,199
  • EUR 1,439 1,719
  • USD 1,647 1,959

Until 06 Sep

View basket 

 
Not ready to book yet?

for 7 days, no obligation

* Early booking discounts may not be combined with other discounts or offers. As such, the discounts for 2nd/3rd/4th delegates are based on the full price.

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

  • 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
  • Sidley Austin LLP, Solicitors
  • Towers Watson (Re) Insurance Brokers Ltd
  • TransRe
  • Twelve Capital

Switzerland

  • Aspen Insurance Ltd
  • Aspen 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

Austria

  • Garant Versicherungs AG

France

  • SCOR SE

Germany

  • Guy Carpenter & Company GmbH

Italy

  • Financial Insurance Company Ltd

Latvia

  • The Motor Insurers' Bureau of Latvia

Poland

  • Polskie Towarzystwo Reasekuracji SA

Russia

  • Ingosstrakh ONDD Credit Insurance LLC

Saudi Arabia

  • Saudi Fund for Development- Saudi Export Program

Sweden

  • Lansforsakringar AB

Enrol or reserve

Run Understanding the Reinsurance Industry Live online/Classroom 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:

Multiple colleagues? See above for details of our discounts for 2, 3, or 4 delegates. For more, talk to one of our training experts to discuss how to:

Run this course conveniently and cost-effectively in-house for your staff and colleagues

Aleksandra BEER
Training expert

Yesim NURKO
Training expert

+44 (0)20 7749 4749

inhouse@ipi.academy