The RGA has created this glossary of terms and their definitions to guide our visitors through the complex world of reinsurance. Any questions? Contact us. A form of reinsurance by which the recipient company shares its premiums, death claims, withdrawal benefits, dividends and policy credits with the reinsurer and the reinsurer pays compensation to reimburse part of its expenses to the company that withdraws. type of reinsurance contract by which the receiving company retains assets relating to all reinsured and fixed policies and retains total reserves for policies, creating a payment obligation to the reinsurer at a later date. These payments include a proportionate share of the gross premium plus a return on wealth. valuation of financial instruments to take into account current market value or fair value. A process using algorithms and statistics that use current or historical facts to make predictions about future events or behaviors. Generally speaking, the actuarial risk is that a person at the end of which a benefit is to be paid is shorter than expected. From the point of view of an insurer, it is the risk that the mortality experience observed in an underlying portfolio will differ from what was previously calculated on the basis of actuarial assumptions.
accounting for technical foreign currency commitments by appropriate investments in the same currency in order to avoid foreign exchange risks. . Losses of particular importance to the direct insurer or reinsurer because of the amount in question; it is defined as a larger loss on the basis of a fixed loss amount or other criteria (more than EUR 10 million gross for Hanover). The amount to be assumed as a liability in the financial institution of an insurer or reinsurer in order to provide for future obligations under current policies and contracts. the annual budget for significant damages assessed from the estimated losses modelled for the natural risk company, as well as for net losses of human origin of more than 10 million euros.