You have no idea how much this helped me, excellent summation! Thank you so much, just subscribed. Do you have any more vids on reinsurance? Would love if you made a series going more in depth.
I appreciate the feedback and glad it helped! I have had a few requests to do another video on reinsurance so I will plan on doing another video in the future. It’s definitely a topic with a lot to it, so I could do even a few more videos.
@@markarnoldsfinance2765This is so helpful and easy to understand. You are quite knowledgeable and would definitely love to see more videos breaking down the reinsurance
Thanks! This was great. Would love if you did an example using Lemonade. I think they do both proportional and non proportional reinsurance. For proportional they cede about 75% of premium and then get about 25% back from what has been ceded as a commision (As far as I understand). Maybe percentage paid as commission is what is negotied? That's part of what I would like clarification on if possible. In the end somehow Lemonade ends up with about 45% of their premiums collected as revenue, so if there is anyway you could clarify how that comes about that would great as well. Thanks 😊
@@cryptoreaper3327 thanks for reaching out! I grew my knowledge in 2 ways. #1 - Hands on. I asked to take over our reinsurance accounting and was granted that. Therefore I had to learn it by researching, asking questions, and performing the reinsurance tasks and completing worksheets, etc. Utilize your broker, reinsurers, and other employees to ask questions and learn from them. It really is just “rolling up your sleeves” and jumping right into it. #2 - Trainings. Look for trainings and classes you can take to expand your knowledge and understanding. As an Actuary you may hold a different view and it may be more on the trainings side of things, but you can also sit with those who produce the reports and worksheets you will be analyzing and request they train you on them so that you can better perform your job.
I do not but that’s an idea I have thought about before, I may consider doing something soon. I do plan on doing another Reinsurance video in the future. I appreciate your support.
Thank you, can you also help understand role of insurance broker who deals with reinsured and reinsurer (underwriter), How Pro Rata is calculated and accounts are settled, Role of London markets
@@jimjohn5765 Hi, sorry it’s been busy. So there is a company called SOVOS and they have some reinsurance classes and content you can sign up for. I researched it this morning and they currently offer 3. The company I took my classes with was absorbed by SOVOS and looks like they don’t have exactly the same offerings but I would take a look and see if it’s something you think would benefit you.
Great topic. If I understand your asking how reinsurers charge premium to the ceding company’s who are covered under a contract. Every contract is different but I see many charge a % of a company’s Earned Premium.
@@JackedSkag yes, income from premiums earned vs losses & expenses paid out. Insurance companies often pay out more in losses and expenses than the premiums earned. It’s not unusual. The way they become profitable is through investments and the investment income they earn. Many insurance companies have huge investment portfolios.
@@markarnoldsfinance2765 Investing the float still takes a backseat to premiums earned vs losses. To say that insurance companies “rarely make income” is false.
