Overview
This course provides a focused introduction to reinsurance and its critical role in strengthening insurer stability and capacity. Learners explore why insurers transfer risk, how global reinsurance markets operate, and the functions of key players such as reinsurers, brokers, and cedants. The course covers core reinsurance methods—proportional, non-proportional, facultative, and treaty—and explains how these structures support portfolio balance and protection against large or catastrophic losses. It also outlines regulatory expectations and the reinsurance claims process, giving learners a practical understanding of how reinsurance safeguards an insurer’s financial health and long-term performance.
Download BrochureLearning Outcomes
By the end of this course, you should be able to:-
- Explain the purpose of reinsurance and its role in spreading risk, enhancing insurer capacity, and protecting solvency in the event of large or catastrophic losses;
- Identify and describe the key players in the reinsurance market, including insurers, reinsurers, brokers, retrocessionaires, and their respective roles in the risk-transfer chain.
- Differentiate between proportional and non-proportional reinsurance methods and evaluate how premiums, losses, and liabilities are shared under each structure;
- Distinguish between facultative and treaty reinsurance, including their specific uses, advantages, limitations, and the circumstances in which each is most appropriate;
- Analyse key treaty categories such as quota share, surplus, facultative obligatory, per-risk excess of loss, catastrophe excess of loss, and aggregate/stop-loss arrangements, and explain how they support portfolio management;
- Apply core legal and regulatory principles relevant to reinsurance, including prudential requirements, disclosure obligations, and the separation of original insurance contracts from reinsurance contracts; and
- Describe the reinsurance claims process, including notification, documentation, loss verification, bordereaux reporting, and potential impacts of late notification on recovery.
