Reinsurance is the essence an insurance company that assumes the risks that have already been undertaken by another insurance company. The waiving company then pays the reinsurance to the company the share of the premium paid by the insured. It is the reinsurance company that assumes the greater risk and becomes liable to the ceding company in the event should the risks take place.
Since the contract is amongst the reinsuring company and the ceding company, the policyholder rights do not get affected. So, the ceding company remains liable to its insured for the claims and benefits that are featured in the insurance policies.
Benefits of Reinsurance
The benefits of reinsurance lies in the decreased risk of bankruptcy and saves the risk of paying millions in claims after a major disaster or similar events. The reinsurer is completely dedicated to reinsuring insurance companies or just another insurance company.
Conventionally, reinsurance is supposed to be between two parties - the primary insurer and the reinsurer. Both the parties agree to bear premiums and losses, however the reinsurer bears more of the loss. At Liberty, we do not just indemnify insurance companies against risks, but much more.
At Liberty, our expert reinsurance team have years of experience in the field of reinsurance. With the support of the team and an Advanced RI Administration system, we deliver reliable and efficient solutions to our clients. Our constant outlook of our investors drives us to be effective players in the insurance market to render the best customized solutions for our customers.
As Liberty enters the international arena of insurance, it has always strived to look beyond solutions; to nurture long term business relationships and expand the company's business network.
We have partnered with various companies and reinsurance brokers who analyse and suggest suitable reinsurance covers for insurers.
Liberty is set to offer protection of reinsurance in domestic and global markets:
- Facultative Reinsurance
- Quota Share Reinsurance
- Primary Reinsurance
- Excess of Loss Reinsurance
- Carve Outs (catastrophe, individual perils, individual risks)
- Stop Loss/Aggregate Protections
- Deductible Buy-backs or Buy-downs
- Individual Risk Facility
- Individual (Spot) Facility
- Semi-Automatic Facilities
- Automatic Facility