What is Reinsurance?
In the second video of this Insurance series, Ted explores the multiple forms of reinsurance and the ways in which they combine to provide extra cover against significant one-off events.
Overview
Insurance companies make money from two primary sources: ensuring that the premiums received exceed the claims paid out (and the costs of running the business) and from the return made by investing those premiums until the claims are paid out. In order to protect their balance sheets, insurance companies also purchase their own form of insurance – called reinsurance – to ensure that a single loss does not end up bringing the company down.
Key learning objectives:
Outline the differences between technical and non-technical profit
Identify the differences between written and earned premiums
What is the difference between insurance and reinsurance?
Summary
Expert
Ted Wainman
Ted Wainman trained and qualified as an Associate Chartered Accountant (ACA) with Ernst & Young before joining JPMorgan on the Investment Management side of the business. He since has over 17 years of experience in designing, developing and delivering financial & business skills training workshops for over 275 clients in more than 35 countries.
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