Understanding reinsurance
A new Swiss Re study "Understanding reinsurance: How reinsurers create value and manage risk" highlights the role of reinsurance as one of the major risk and capital management tools available to insurance companies.
The study explains how reinsurance benefits buyers of reinsurance by reducing the volatility of their underwriting results, providing capital relief as well as facilitating access to reinsurers’ expertise and services. The role of reinsurance in making the insurance industry more stable and attractive is thereby underlined. In addition, the study describes how reinsurers use risk management systems to guarantee that the capital base and the risks assumed are aligned, thus ensuring the long-term survival of the reinsurance company.
The publication is designed as a background paper for a broad audience: supervisors, regulators, parliamentarians as well as members of industry associations, clients, investors and the media. It is written in non-technical language and provides the reader with a deeper understanding of how reinsurance operates and its important place in the overall economy.
