000 03103cam a22003974a 4500
001 6299
003 The World Bank
006 m d
007 cr cn|||||||||
008 020129s2012 dcu i001 0 eng
024 8 _a10.1596/1813-9450-6299
035 _a(The World Bank)6299
100 1 _aGurenko, Eugene N.
245 1 0 _aInsurance Risk Transfer and Categorization of Reinsurance Contracts
_h[electronic resource] /
_cEugene N. Gurenko
260 _aWashington, D.C.,
_bThe World Bank,
_c2012
300 _a1 online resource (41 p.)
520 3 _aDespite the existence of numerous quantitative approaches to the categorization of financial reinsurance contracts, often insurance regulators may find the practical implementation of the task to be technically challenging. This research paper develops a simple, affordable, and robust regulatory method that can help insurance regulators to categorize financial reinsurance contracts as reinsurance or financial instruments. By reviewing real examples of different categorization methods, this paper explains how the proposed method standardizes such categorization. It also summarizes the existing pertinent literature on the subject with the view to helping insurance regulators to first apply some simple indicators to flag the main issues with financial reinsurance contracts that may need further reviews. Having identified the suspicious reinsurance contracts, supervisors may consider several solutions provided by the authors and, in some cases, requiring further quantitative testing of risk transfer contracts for categorization purposes, supervisors may also consider adopting the Standardized Expected Reinsurer's Deficit approach to contract testing presented in this paper. The approach advocates the use of a simple standardized stochastic method that would allow market participants and regulators to perform robust quantitative tests quickly and at an affordable cost. Besides addressing the obvious drawbacks of the "10-10" test, the proposed alternative method allows a great reduction in the technical challenges posed to the users of the Expected Reinsurer's Deficit approach based on full stochastic models with only a minimum loss of predictive accuracy.
650 4 _aDebt Markets
650 4 _aFinance and Financial Sector Development
650 4 _aFinite Reinsurance
650 4 _aHazard Risk Management
650 4 _aInsurance & Risk Mitigation
650 4 _aInsurance Law
650 4 _aInsurance Risks
650 4 _aLabor Policies
650 4 _aPrivate Sector Development
650 4 _aReinsurance
650 4 _aReinsurance Contracts Categorization
650 4 _aRisk Transfer
700 1 _aGurenko, Eugene N.
700 1 _aItigin, Alexander
700 1 _aWiechert, Renate
776 1 8 _aPrint version:
_iGurenko, Eugene N.
_tInsurance Risk Transfer and Categorization of Reinsurance Contracts.
_dWashington, D.C. : The World Bank, 2012
830 0 _aPolicy research working papers.
830 0 _aWorld Bank e-Library.
856 4 0 _uhttp://elibrary.worldbank.org/doi/book/10.1596/1813-9450-6299
999 _c142052
_d142052