Outwards Reinsurance
The Outwards Reinsurance team is responsible for purchasing effective reinsurance protection including the negotiation, production, dissemination of placing information, and record keeping.
At Canopius, we work closely with our claims and underwriting teams to gain a comprehensive insight and understanding of the underlying protected books of business and the nature of the claims affecting the Reinsurance programme.
As part of our comprehensive reinsurance services, we ensure that each programme is tailored to meet the specific needs of the business, optimising both coverage and cost efficiency.
What sets us apart
- Entrepreneurial culture: Canopius Re is proud of its entrepreneurial culture, which aligns with its goal of driving targeted growth.
- Teamwork: Canopius Re is nimble, flexible, and able to listen to any client problem with its multi-class offering. This approach to practical innovation is reflective of how the Canopius Group does business with its partners.
- Expertise: Canopius has a leading specialist Reinsurance Claims team based in London. It aims to be the envy of the market by setting a new standard for claims performance.
- Successful history: Canopius has been able to build a successful and established Reinsurance business. Now after a number of years, it’s bringing together these successful parts into one whole solution. Canopius is serious about Reinsurance.
We also offer expertise in collateralised reinsurance, which provides a secure, flexible alternative for managing large-scale exposures.
Speak to one of our specialist team
FAQs
What is Outward Reinsurance?
Outward reinsurance, also known as ceding reinsurance, is the practice whereby an insurance company (the cedent) transfers a portion of its risk portfolio to another insurance company (the reinsurer). This transfer helps the original insurer manage its risk exposure, stabilise its financial performance, and increase its underwriting capacity.
What are the types of reinsurance?
Proportional Reinsurance: The reinsurer receives a fixed percentage of premiums and pays the same percentage of claims.
- Quota Share: A fixed percentage of every policy is reinsured.
- Surplus Share: Only the portion of risk that exceeds a certain retention limit is reinsured.
Non-Proportional Reinsurance: The reinsurer only pays if losses exceed a certain threshold.
- Excess of Loss: The reinsurer covers losses that exceed the cedent’s retention up to a specified limit.
- Stop-Loss: The reinsurer covers losses that exceed a predetermined amount of total losses.
Why does Canopius buy Reinsurance?
Risk Management: By ceding a portion of their risks, insurers can protect themselves from large losses due to catastrophic events or significant claims.
Capital Relief: Reinsurance allows insurers to reduce the amount of capital they need to hold against potential losses, thereby improving their financial ratios and solvency.
Capacity Expansion: Reinsurance enables insurers to underwrite more business than their own capital base would allow, increasing their capacity to take on new policies.
Stabilising Results: Reinsurance helps insurers smooth out their financial results by mitigating the impact of large, unexpected claims.
What is the cedant?
The cedent is the insurance company that transfers risk to a reinsurer.
What is the difference between inward and outward insurance?
Inward insurance refers to the insurance business that a company underwrites from its clients, essentially the policies it sells and the risks it assumes. Outward insurance, also known as reinsurance, occurs when an insurance company transfers a portion of its own risks to another insurer (a reinsurer) to reduce its exposure to large losses.
Inward insurance represents the company’s primary business, while outward insurance helps manage and spread its risks. Both are integral parts of an insurance company’s risk management strategy.
Understanding the difference between insurance and reinsurance is crucial for effective risk management strategies, as both play distinct yet complementary roles in the insurance industry.
What are outward reinsurance premiums?
Outward reinsurance premiums are what the cedent (the primary insurer) pays to the reinsurer for a reinsurance contract. These are the cost of risk transfer and are dependent on the type of reinsurance, volume of risk ceded and expected claims frequency and severity.
