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Mar 1, 2006 · Conversely, the reinsurer does not need to maintain a large staff when the reinsurance intermediary will allocate to it the appropriate premium (less brokerage, of course) and will bill it the appropriate share of any losses. Smaller reinsurers rely heavily on the reinsurance intermediary for accounting and claims administration.
Essentially, a reinsurance intermediary—aka, “intermediary” or “broker”—represents a ceding company in need of capital to support liabilities on their balance sheet. The intermedi-ary finds and brings in sources of capital who are willing to assume risks by purchasing the liabilities for a price—the negotiated reinsurance premium.
Oct 23, 2023 · The role of the reinsurance intermediary was crucial in 2023 and will be in 2024 due to the significant transformation occurring in the industry. In turbulent times, with natural disasters, geopolitical uncertainties and economic headwinds, the skills of an intermediary are invaluable. This was particularly the case last year because inflation ...
- Background
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- Impact on The Lloyd’s Market
The Insurance Mediation Directive contains requirements for EU Member States’ regulation of insurance intermediaries. The new IDD will enhance this regulation, with a particular focus on practices for selling insurance products. It seeks a level playing field between participants in insurance sales in order to improve consumer protection, market in...
Scope – the existing directive applies to insurance and reinsurance mediation. The new directive applies to insurance and reinsurance “distribution” (hence the new title of “Insurance Distribution...General principle –there will be an obligation on Member States to ensure that, when carrying out distribution, insurance intermediaries, insurance and reinsurance undertakings always act honestly...Registration – the new directive continues the existing requirement that insurance and reinsurance intermediaries must be registered by an authority in their home Member State. It does not require...Professional development – there is a requirement for at least 15 hours of professional training or development per year for employees of intermediaries and insurers and reinsurers carrying out dis...The IDD is expected to enter into force in December 2015 or January 2016. Its provisions must be given legal force in each Member State within the two years following. Therefore IDD is likely to be implemented by December 2017 – January 2018.
The new directive will apply to any EU insurance intermediaries through or with whom Lloyd’s underwriters carry on business, including Lloyd’s brokers and coverholders and other EU intermediaries in the chain between Lloyd’s underwriters and customers. Reinsurance intermediaries are included in the directive’s scope. Managing agents and their servi...
As the demands of commerce evolve, so does the need to innovate in insurance and reinsurance. 2.1 Origin of Insurance As noted in the introduction, the idea of mutual aid can be traced back to primitive societies based on simple bar - ter and trade. If a member of the community suffered loss, such as the destruction of the house, or the loss of ...
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A reinsurance intermediary is a specialized broker that facilitates the transfer of risk between primary insurers and reinsurers. They play a crucial role in the reinsurance market by helping insurers find suitable reinsurance coverage and negotiating terms and pricing on their behalf. This intermediary function is essential as it bridges the gap between insurers seeking to manage their risk ...
People also ask
Does a reinsurance intermediary need a large staff?
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Do reinsurance intermediaries need written authorization?
How do reinsurance intermediaries work with ceding insurers?
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Which reinsurance intermediaries will be affected by the new directive?
The Q&A gives a high level overview of the market trends and regulatory framework in the insurance and reinsurance market; authorisation of insurers, reinsurers, and insurance intermediaries; ownership restrictions; ongoing requirements; penalties for non-compliance; sales and marketing of insurance and reinsurance services; regulation of the transfer of risk; the regulation of insurance and ...
