Reinsurance market-What is the reinsurance market?
Reinsurance reinsurance market is the sum of commodity exchange relations or reinsurance commodity supply and demand relationships. In the reinsurance market, the transaction was targeted at the insured member insurers to provide insurance risk faced by a variety of reinsurance protection.
Reinsurance market - Feature
A complete re-insurance market, including elements of the following aspects:
First, the reinsurance market, the seller or the supply side;
Second, the specific transaction object - all kinds of reinsurance products;
Third, to promote the role of reinsurance transactions supporting insurance intermediary.
Practice from the international insurance and reinsurance market, the supply side mainly by professional reinsurance companies, reinsurance business and industry, the direct insurance companies and regional and international-based reinsurance group and so on. Professional reinsurance companies are those that only engage in reinsurance business insurance companies. Reinsurance Group refers to two or more insurance companies organized a group. Reinsurance Group based international reinsurance group, including domestic and regional re-insurance group's reinsurance group. Regional re-insurance group is set up in different regions of the world's reinsurance group, its composition is generally in two ways: First, from countries within the region shares the investor to set up a dedicated regional reinsurance agencies, such as the Asian Reinsurance Group its members are China, India, Philippines, South Korea; two from each region to form a regional insurance company's reinsurance group. Reinsurance Group was established to reduce the outflow of premiums, but also the relative concentration of risks lurking danger.
From the reinsurance market demand, re-insurance business is the most important source of direct separation of business insurance company, in addition, another source separation is a professional captive insurance companies. Although professional captive insurance company has a strong capital strength, but also need to re-insurance support to ensure operational stability. Therefore, many countries have adopted legislation on the direct provision of reinsurance business, in order to fully ensure the solvency of the insurer, or through insurance, reinsurance market for industrial policy to guide the development and nurturing.
Reinsurance market - Classification
1) The reinsurance market can be divided into domestic reinsurance market, regional and international reinsurance market-based re-insurance market.
2) the limitation of liability reinsurance division, reinsurance market can be divided into the proportion of non-proportional reinsurance market and the reinsurance market. For example, the London reinsurance market, the excess is a typical non-proportional reinsurance market, while Germany's auto insurance market is a typical re-proportional reinsurance market.
Reinsurance market - features:
1) the international reinsurance market is an important part of the insurance market, has a broad international consensus. In the reinsurance market, insurers can take over the world reinsurance arrangements to ensure stability in the business. In particular, the major domestic and international trade activities, such as aerospace projects, nuclear power plant projects have a huge risk of liability, greater need for insurance. Although the reinsurance market is evolved from the insurance market, but is not a simple extension, but the international insurance market, an important and indispensable part.
2) The reinsurance market trading reflects the insurers and reinsurers cooperation. Insurers and reinsurers in between, a good contact with both sides play a decisive role. Signing long-term contracts for reinsurance ceded often contracted before or after the contract, to the technical problems that may occur, market issues, and reinsurance to accept people for consultations. So, to some extent the reinsurance transaction is also a co-operation.
Reinsurance market - the formation of conditions:
From the national insurance practice, the formation of the reinsurance market or training must have certain conditions.
1) relatively stable political situation;
2) well-developed insurance market;
3) modern communications equipment and information networks;
4) a more liberal foreign exchange regime;
5) has a wealth of reinsurance theoretical knowledge and practical experience of professionals;
6) has a considerable number of lawyers, accountants and actuaries and other intermediary services.
The international reinsurance market:
Currently, the major reinsurance markets in developed countries, the international reinsurance market, mainly in the United Kingdom, United States, Germany and Switzerland. Such as the UK, USA, France, Switzerland and Germany's overseas branches of foreign companies accounted for about 3 / 4, the annual premium income of about $ 80 billion. Western Europe's reinsurance premium income accounted for 60% of total world premiums, the U.S. accounted for 20%.
Europe in the insurance market is dominated by professional reinsurance companies, and there is complete freedom (no statutory reinsurance), commercialization, intense competition, an important international position. The 20 largest international reinsurance business of companies, there are seven European markets. Germany is Europe's largest reinsurance market, currently with 120 countries of the world, more than 2,000 foreign companies have to contact 40% of premium income from abroad, foreign expansion is the best business insurance, reinsurance works. But by the events of September 11 and many other factors, in August 2003, Standard & Poor's reduced its rating even four, down from AA-A +, now it's rating than competitors Buffett's Swiss Re and General Reinsurance reduces the two levels. Europe's second largest reinsurance center in Switzerland. Swiss Re is also a professional reinsurance company market dominance, in addition to Swiss Re, there is also ranked eighth in the world of the Zurich Insurance Group and re-sixteenth of the Winterthur Group (Winterthur Swiss Insurance). Swiss reinsurance market was built in 1864, the company's international business development, based on the first of its highest foreign premium income and extensive information network known for.
The United Kingdom by the London reinsurance market and the insurance company Lloyd's market of two parts, especially Lloyd's even more significant, its main business is reflected in the reinsurance market. Its characteristics are required to go through all reinsurance broker, and business and more from abroad. Although in recent years, Lloyd's reinsurance business oversupply, but in the world reinsurance market still plays an important role.
U.S. insurance industry is relatively late, accordingly, the development of reinsurance relatively late time, but its strength can not be ignored, then the insurance company in New York are among the forefront of the world reinsurance market. U.S. reinsurance market emphasis on business exchange, joint ventures and co-insurance, reinsurance companies than Europe retention high. The world's top 15 reinsurance companies, the United States, General Reinsurance Corporation (GE Re) third.
Reinsurance market, the Japanese professional reinsurance companies, and most are concurrently re-insurance companies. Insurance Law in Japan there is no statutory requirement reinsurance, risk of major domestic co-insurance or reinsurance to the solution, the flow of international markets from Japan to market the business is mainly high-risk and catastrophe risk. Currently mainly through the reciprocal exchange of foreign reinsurance business into the world reinsurance market.
In addition, a number of new reinsurance market received widespread attention. Such as the Arab Bahrain, Singapore and South Korea in Asia, Oceania and Australia.
