Category: Insurance tips Release Date: 2006-08-01
First, the duration of contracts and allocation of responsibilities. Duration of the distribution of the proportion of the contract is generally ad hoc basis. With this different, non-proportional reinsurance contract period is normally one year, and there are two different basis of calculation:
(A) The basis for indemnity occurs. Where this took place within the life of the contract award, is a contract year should bear responsibility. For the life of the contract issued by the insurance policy, the contract expires, the responsibility has not yet ended, must from next year's recipient is responsible for reinsurance. But the separation of people who could take the fee approach, the original reinsurance continue to be responsible to the responsibility of the recipient end.
(B) the basis of the policy issue. Where in the life of the contract issued by the insurance policy and renewal business, are the contract should bear the responsibility. Even if the contract expires, there's unfulfilled responsibilities, still points to the responsibility to ensure the recipient is responsible until the end.
Proportional reinsurance contract is also the basis of the responsibility of these two terms, but non-proportional reinsurance contract the difference is that there is no outstanding premiums into and roll-out.
Second, the final net payment of compensation. Non-proportional reinsurance contract sums referred to in the final separation of the net to pay compensation refers to the separation of a loss in the event the actual amount of compensation and related costs of paying the total number. Which have been deducted can be recovered items (such as salvage recovery, the recovery to a third party, other reinsurance acceptance of the proportion of people who share back or temporary reinsurance indemnity) to pay compensation after the net. Finally the net to pay compensation is Peian to meet all claims and accounts receivable have been disposed of after the amount of net pay reparations. Generally include claims costs, but does not include the separation of people of their employment salaries and their own expenses.
(C) The responsibility to restore. Is also a non-proportional reinsurance contract with the ratio of the difference of the reinsurance contracts at. Responsibility to restore is in the case of compensation to the reduction in the amount of reinsurance the responsibility, in order to be fully protected in the amount of liability insurance will be restored to the original amount. There are two problems which need to be considered. First, the number of recovery. Some contract does not limit the number of times, such as liability insurance and accident insurance in general ultra-compensable reasonable; either a limited number of times, such as ultra-indemnity catastrophe. Second, the question of fee increases. With regard to fees and charges, and some responsibility to restore provisions are free of charge, called the auto-recovery; some provisions of original premium plus 50% or 100%, some of the original 100% premium based on the actual outstanding due During the calculations, some 50% of the original premium basis regardless of the expiration time. For example, as follows:
More than 500,000 yuan after the existing 1,000,000 yuan fire super-lose reinsurance, fixed premium 24000RMB, secondary responsibility to restore, one-year term beginning January 1. February 28 occurs once Pei An, award 600,000 yuan, November 30 occurs once Pei An, award 400,000 yuan. On the resumption of responsibility increases calculated as follows:
(A) of 100% premium basis and the actual period of outstanding calculated as follows:
1. Indemnities 600,000 yuan, February 28 took place Pei An, there are still outstanding 10-month period
600000 10 ---------- × 2400 ×-----= 1200 Yuan to restore liability insurance for 100,000,012
2. Indemnities 400,000 yuan, November 30 Pei An occurrence, there are still outstanding during the period 1 month
400000 1 ----------× 2400 ×-----= 800 Yuan to restore liability insurance for 100,000,012
(B) the 50% premium basis, without regard to outstanding during the period to calculate:
1. Indemnities 600,000 yuan
600000 ----------× 2400 × 50% = 7200 to restore liability insurance for 10 million Yuan
2. Indemnities 400,000 yuan
400000 ----------× 24000 × 50% = 4800 Yuan to restore liability insurance for one million
Comparing the above two kinds of calculations, according to 100% of the original premium basis and the actual calculation of the outstanding period is reasonable.
On the responsibility to restore the number of annual premiums and fees should also be considered together to consider the pros and cons of the situation.
4, premiums and rates. Proportional reinsurance and non-proportional reinsurance sub-premium calculations are based on separation of people based on premiums of direct business. However, the proportion of reinsurance ceded and reinsurance in accordance with the recipient of the responsibility of the insured amount in proportion to the allocation of premiums, rather than proportional reinsurance as otherwise provided in accordance with sub-premium and rates to carry out the distribution.
Non-proportional reinsurance contract premium can basically be sub-divided into two kinds.
(A) fixed premium. This is the reinsurance ceded and the agreement between the recipient of a certain amount of money as a sub-premium, the validity period of the contract remain unchanged.
(B) adjusting the premium. This is a premium with the separation of people will be the quality and quantity of direct business link to automatically adjust the premiums. Premium adjusted basis in accordance with the following two:
1. Premium. Separation of people based mainly on the amount of direct business, at prescribed rates to adjust.
2. Indemnities. Separation of people based mainly on the quality of direct business, at prescribed rates to adjust.
Adjust the premium would have to establish certain rates. Non-proportional premium rate development, as the same as direct business is determined by pure rate and additional rate this part of the composition. Pure indemnity rate is the percentage of premium, but also the cost of compensation. Compensation is paid the sum of reparations and indemnities outstanding. The premium is deducted from the refund in gross premiums and net premiums on insurance premiums and so on. Additional rate refers to the operating costs and profits. This is expressed as a percentage ratio of reinsurance. Rather than proportional reinsurance is used to cover the cost of the indemnity to score indicated, such as 100/80, or (80 +20) / 80, in which compensation cost is 80/80, the additional cost is 20/80.
The calculation of non-proportional reinsurance many ways, there are 1, 3 or 5 years is calculated, now 5 years is calculated for example as follows:
Annual net premium income (total net insured amount) occurred award (Ultra indemnity reinsurance is responsible for part)
Year 1 20.00001 billion
Year 2 2.300005 billion
Year 3 28.000019 billion
4th Year 30.000011 billion
5th Year 39.000025 billion
Total 140.00007 billion
700,000 indemnity costs (net rate )----------× 100% = 5% 1400000 20 surcharge 5 %(------)= 5% × 25% = 1.25% 80 80 20 Sub-premium rate of 5 %(------+------)= 6.25% 8080
(E) super-lose-level. Non-proportional reinsurance can be divided into several levels according to business needs. In particular, ultra-indemnity catastrophe, reinsurance limit of liability is high, such as the big number of levels, is not easy to disperse risk. Were divided into levels, you can let people choose freely to accept reinsurance accepted. If we need more than 5 million U.S. dollars of 100 million U.S. dollars after the catastrophe ultra-lose, you can lose this super-divided into four levels:
First layer: more than 5 million U.S. dollars after 5000000;
Second layer: more than 10 million after 15 million;
The third layer: more than 25 million after 25 million;
The fourth layer: more than 50 million after 55 million.
Namely, the person who received the first layer 5 million, the second layer of the person who received 150 million, the third layer of the person who received 25 million, the fourth layer of the person who received 550 million, super-lose the total amount of 100 million U.S. dollars liability.
Tier undertakes no obligation to accept the people also accept the second, third and fourth super-lose, people also accept the other floors do not have this obligation, each recipient freedom of choice according to specific conditions of acceptance on each super-lose component.
