History and motivation. Basic Risk Theory applied to reinsurance. The reinsurance market and lines of business. Pricing reinsurance contracts. Solvency and capital considerations. Alternative Risk Transfer.
Understanding the economic value creation through reinsurance. Knowing the most common types of reinsurance and being able to represent the reinsured losses in terms of random variables. Understanding the economic and mathematic principles underlying the premium calculations for reinsurance contracts.
History of reinsurance. Historic examples of large events. Fundamentals of reinsurance & contract types. Overview of large reinsurance companies & market places. Lines of business explained: Property, Casualty, Life & Health, Credit & Surety. Risk theoretical principles including frequency/severity models, stop-loss transforms and exposure curves. Exposure and experience rating. Capital impact of reinsurance: Swiss Solvency Test and Solvency 2, rating agency view, insurance vs. investment risks. Insurance Linked Securities: cat bonds, industry loss warranties.
A script will be made available in electronic form.