The Reinsurance Recovery
REINSURANCE RECOVERY
The Scenario:

A property owner who wishes to insure a building with a value of NT $ 40 million approaches Promiseland.

Given Promiselandís limited capital, it could not accept and retain for its own account the full amount of NT$ 40 million.

It could only accept 1.25% of the sum insured (NT$ 0.5 million) and would therefore need to reinsure the remaining NT$ 39.5 million of liability.

Similarly, Trust Alliance (reinsurer) has to reinsure their liabilities in excess of their retentions.

Hence they would retrocede the excess amount to the retrocession.

Reinsurance can be broadly defined as insurance of insurance and retrocession as insurance of reinsurance.
Introduction
921 Earthquake
Reinsurer
Photo Gallery
Reinsurance Recovery
Current Status
Contact Us
Links
General Knowledge
Glossary
Reinsurance Program
The Losses
Claims Settlement
Conclusions
Profit Track
Property
Owner
insurance
Promiseland Retention
NT$0.5m
Trust Alliance
International
NT$2m
Another
Insurance
Company
reinsurance
retrocession
INSURED
INSURER
REINSURER
RETROCESSIONAIRE
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Process of Insurance to Retrocession