What is the cost of reinsurance?

By |2018-07-10T04:46:25+00:00July 9th, 2018|, |

The cost of reinsurance varies greatly, and it is based upon both industry standards and the negotiating skills among the two companies involved, the insurance (or ceding) company and the reinsurance (or assuming) company. The cost of reinsurance is described as a “Ceding Fee” or “Ceding Allowance”, and consists of [...]

Why should I consider forming a reinsurance company rather than a regular captive insurance company?

By |2018-07-10T04:46:25+00:00July 9th, 2018|, |

Creation of a regular captive insurance company is an expensive undertaking. Formation of a captive insurance company involves the work of attorneys, actuaries, underwriters and other professionals. Large non-deductible capital contributions are also required. Furthermore, the captive must satisfy “insurance” requirements, including risk pooling or risk sharing, and must qualify [...]

What is reinsurance?

By |2018-07-10T04:46:25+00:00July 9th, 2018|, |

Reinsurance is the transfer of insurance risk (and associated insurance premiums) from one insurance company to another insurance company. The company that receives (or “assumes”) the insurance risk (and associated reinsurance premiums) is called the “Reinsurance Company” and the company that transfers (or “cedes”) the risk (and associated premium) is [...]

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