Reinsurance
Reinsurance is like insurance for insurance companies. When insurance companies want to protect themselves from very large claims or disasters, they buy reinsurance. Think of it as spreading out risk - instead of one insurance company taking on all the risk, they share it with other companies. This helps insurance companies stay financially stable and able to pay claims even when big unexpected events happen. This is similar to how people buy insurance to protect themselves, but at a much larger scale between companies.
Examples in Resumes
Managed Reinsurance treaty negotiations resulting in $10M cost savings
Analyzed Reinsurance contracts and prepared risk assessment reports
Led team handling Reinsurance claims processing for catastrophic events
Coordinated with Reins carriers on policy renewals and premium calculations
Typical job title: "Reinsurance Professionals"
Also try searching for:
Where to Find Reinsurance Professionals
Professional Organizations
Job Boards
Industry Networks
Example Interview Questions
Senior Level Questions
Q: How do you evaluate the financial impact of a reinsurance treaty on an insurance company?
Expected Answer: A senior professional should explain how they analyze loss ratios, premium costs, and risk exposure. They should mention considering factors like historical claims data, market conditions, and company risk tolerance when evaluating treaties.
Q: Describe a challenging reinsurance negotiation you've handled and how you reached a successful outcome.
Expected Answer: Should demonstrate experience in treaty negotiations, understanding of market dynamics, and ability to balance cost with coverage needs while maintaining good relationships with reinsurance partners.
Mid Level Questions
Q: What's the difference between proportional and non-proportional reinsurance?
Expected Answer: Should explain that proportional means sharing both premiums and losses in agreed percentages, while non-proportional means the reinsurer only pays when losses exceed a certain amount. Should give simple examples of when each is used.
Q: How do you handle reinsurance claims processing?
Expected Answer: Should describe the process of reviewing claims, ensuring they meet treaty terms, preparing documentation, and coordinating with reinsurers for payment. Should mention importance of accuracy and timing.
Junior Level Questions
Q: What is the purpose of reinsurance?
Expected Answer: Should explain that reinsurance helps insurance companies manage risk by sharing it with other companies, which protects them from large losses and helps them take on more business.
Q: What are the basic types of reinsurance agreements?
Expected Answer: Should be able to explain the difference between treaty (automatic coverage for a type of risk) and facultative (case-by-case coverage) reinsurance in simple terms.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of insurance and reinsurance concepts
- Claims processing and documentation
- Data entry and reporting
- Understanding of basic policy terms
Mid (2-5 years)
- Treaty analysis and review
- Claims management
- Risk assessment
- Relationship management with partners
Senior (5+ years)
- Treaty negotiation
- Strategic planning
- Market analysis
- Team leadership and mentoring
Red Flags to Watch For
- No understanding of basic insurance concepts
- Lack of attention to detail in policy review
- Poor communication skills
- No experience with compliance and regulations
