Session: 80

Life Reinsurance

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Summary

The main reasons for the growing interest in Financial Reinsurance (Fin Re) concepts are the lack of capacity and high reinsurance premiums for very volatile risks. The key questions of Fin Re are:

In Fin Re treaties, often only a timing risk is transferred. This risk consists in claims that have to be paid out earlier than expected and so interest earnings are lost. 

Fin Re agreements are often multi-year and involve the calculation of a yearly experience account with the result carried forward with interest to the next year; profit and losses are shared at the end of the duration. Examples of the functions of Fin Re for the Insurer are the improvement of solvency parameters, financing or the acceleration of embedded profits. 

Models of Fin Re may be retrospective (claims already incurred) or prospective (claims not yet incurred). An example of a retrospective cover is a loss portfolio transfer. A so-called funded cover or the financing of high 1st year commissions of a life assurer are prospective covers. The securitization, which is a financing provided by an investor of the capital market, will be described in more detail.

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Reinhard Dehlinger has been Chief Underwriting Officer for Life & Health at Converium since 1999.

He holds a master's degree in mathematics from the University of Bielefeld (Diplom-Mathematiker) and is a member of the German Society of Actuaries (DAV).

Reinhard Dehlinger has a vast experience in life reinsurance, marketing & sales, pricing, actuarial and medical underwriting services and controlling. He worked 17 years for Bavarian Re and Frankona Re. Before starting his career at Converium he held the position of Executive Director for Gerling Global Re.

As a member of the Wuerttemberg Group management board he launched a new life insurance company for unit linked products.

Reinhard Dehlinger speaks German, Englisch and French. He is the contact person for Life and Accident & Health.

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