25828 Reinsurance

Faculty of Business: Finance and Economics
Credit points: 6 cp

Subject level: Postgraduate

Result Type: Grade and marks

Requisite(s): 25825 Principles of Risk and Insurance AND 25826 Risk Management AND 25829 Property Insurance
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject develops an understanding of the fundamental principles of reinsurance, reinsurance underwriting and portfolio management. It directs attention to identification and analysis of contemporary reinsurance trends and issues.

Subject objectives/outcomes

On completion of this subject, students should be able to:

Understand the basic concept of reinsurance as a risk management and financial management tool for insurers
Understand the fundamental reinsurance processes
Evaluate underwriting techniques and reinsurance portfolio management
Understand the management of contemporary reinsurance insurance issues and opportunities.

Contribution to graduate profile

This 6-credit-point postgraduate subject introduces students to the concept of the use of the reinsurance process by insurers in the management of various personal and corporate reinsurance risk exposures. The subject outlines the reinsurance underwriting and claims management processes and the strategic role played by the reinsurance process in the overall general insurance function.

The subject directs attention to the management of contemporary reinsurance trends and issues and the major structuring influence of these upon the insurance industry.

Teaching and learning strategies

The subject will be taught in a combined Lecture/Tutorial format with extensive use being made of Case Studies in the issue identification and management processes.

Content

Basic reinsurance principles and methods.
Facultative, Proportional Treaty and Non Proportional Treaty reinsurance
Reinsurance contract structure and specific reinsurance types
Reinsurance portfolio programming
Reinsurance financial management and regulation.
Contemporary reinsurance trends and issues.

Assessment

Class Test (Individual)	25%
The class test is designed to assess students' understanding of the theories and concepts to demonstrate that students have met objective 1.
Assignment and Case Study (Individual)	25%
This will assess students' understanding of the concepts of Reinsurance in a practical case study. This assignment will allow students to demonstrate that they have met objective 2 and 3.
Final Examination (Individual)	50%
This exam will test students' understanding of the theory and their ability to apply the theory. This will enable students to demonstrate that they have met objectives 1-4.

Recommended text(s)

Bellerose, R.P. (1987), Reinsurance for the Beginner, 3rd ed., Witherby, London.

Indicative references

Golding, R., (1987), The Law and Practice of Reinsurance, 5th ed., Witherby, London

Kiln, R.J. (1991), Reinsurance in Practice, 3rd ed., Witherby, London

Merkin, R. (1998), What is Reinsurance?, DYP Insurance Publications

Riley, K. (1997), The Nuts and Bolts of Reinsurance, LLP Limited, London.