Reserving for Reinsurance - Friedland

Study Strategy

Checklist

1. Be able to list and explain the purposes of reinsurance
2. Be able to describe the different types of reinsurance
   • Treaty
   • Facultative
   • Proportional
   • Non-proportional
   • Finite risk
3. Know the different types of data used by reinsurers
4. Know how reinsurers obtain data
5. Know how LAE is treated and be able to calculate estimated gross, net and ceded losses with LAE
6. Know the data requirements for an appropriate reserve analysis
7. Be able to explain the challenges that are present in reinsurers’ data
8. Be able to calculate ultimate losses using traditional reserve methods
   • Development method
   • Expected loss method
   • Bornhuetter-Ferguson method
9. Be able to calculate gross, net and ceded losses (including IBNR) for different types of reinsurance
   • Quota share
   • Surplus share
   • Excess per risk
   • Excess per occurrence (and catastrophe)
   • Aggregate excess of loss
10. Be able to calculate gross, net and ceded losses when multiple reinsurance contracts are in use
11. Be able to calculate ultimate catastrophe losses using the catastrophe adjustment

My Notes