Reinsurance Education

[GA Peach]

I need to learn more on reinsurance, in particular, risk transfer. I'm in regulations and need to be able to look at contracts to determine if all's OK. I review reserves, so from this point, I need to understand what an actuary should examine to determine if the company's contracts are adequate. This is probably one of my weakest areas - so there's no doubt, education's in store!

There aren't a lot of folks around here with good, solid reinsurance backgrounds, so it's difficult to really ask someone. Can anyone recommend a seminar or program? I'm taking course 5 this sitting so I don't want to be overloaded with textbooks on reinsurance - if you know what I mean! I need a "quicky" overview on what to look for! Help please.

[Mulan]

check out the Ratemaking seminar and Loss reserve seminar for pertient topics, may be a section in Foundations, or check out the CAS online catalog of proceedings/forum papers on reinsurance.

Better yet, get a reinsurance "mentor" for a while.....

Good luck!

[DW Simpson]

Some reinsurance & brokerage actuaries study for the ARe designation, offered by the AICPCU: http://www.aicpcu.org/flyers/are.htm .

[Arlie_Proctor]

I think there have been several sessions on the definition of risk transfer and its associated tests. Check the CAS web site for handouts/notes from old Loss Reserve seminars (topics risk transfer, FAS 116, finite reinsurance).

Making the actual determination is definitely an art as opposed to a science.

[joeorez]

Hi,

I'm confused about the original post. You're in regulations, reviewing reserves?

Does this mean you work for an insurance department?

And is your concern, "Does this contract meet the statutory requirements for risk transfer, so that the ceding company may treat this contract as reinsurance on its statutory statements?"

If so, it sounds like you should have discussions with lawyers and statutory accountants. Perhaps the big accounting firms can be helpful.

[GA Peach]

Thanks for all the advice! I've got some reading to do.

joeorez-

Yes, I work for an insurance department. And yes, that is the question. The area that I'm in (solvency) consists of our section and the financial/insurance examiners. When a technical question comes to us about reinsurance, since the examiners aren't trained (nor expected to be), the actuarial section's required to answer such questions on risk transfers - among other things. I thought about consulting with one of the big accounting firms too to see how they do what they do. Since I haven't passed all of my exams, I usually rely on the actuary I work for in these cases. All I wanted were some sources that I could go to in order to help me self-learn so that I'll be more knowledgeable and not have to rely on him so much.

Thanks again all.

[Maine-iac]

I'll second Claude's suggestion. Probably actually studying for the ARe designation is more than you want right now, but the study materials are very good. Some of them are used in the CAS syllabus.