Reinsurance can be defined in simple terms as 'insurance for insurers.' It is the insurance purchased by an insurance company to mitigate its risks and obligations to pay large claims. Reinsurer helps the insurer mitigate its risk by absorbing some of the losses. The insurance company, which is the insured in this case, is called the 'ceding party' or the 'cedent'. The reinsurer may be a pure play reinsurance company that underwrites only reinsurance or another insurance company. Reinsurers absorb
Catastrophe bonds are a new type of insurance securitization and have become increasingly popular in the insurance industry throughout the 21st century. Unlike traditional reinsurance products, cat bonds are “fixed income instruments issued primarily by insurers and reinsurers as a way of passing on their exposure to potential large financial risks associated with natural catastrophes” (Ip). in the form of an insurance linked security. These securities are designed to protect insurers and reinsurers
Alliance" of 1879, the "Dreikaiserbund" of 1881 and the "Reinsurance Treaty" This was also the case for both France and Russia, with them agreeing the "Franco-Russian Military Convention" on August 18th 1892 and later agreeing the "Franco-Russian Alliance" in 1893. France and Russia were animated by a common desire to preserve peace. The only reason it was possible for France and Russia to form this alliance is because Germany allowed the Reinsurance treaty to become invalid. Both countries wanted different
‘The pattern of alliances and agreements formed in Europe in the years 1879-1907 was shaped primarily by Germany’s concerns about its security.’ How far do you agree with this opinion? The alliances formed from 1879 to 1907 were primarily due to the security concerns of Germany, this is shown by German attempts to isolate France to prevent them from taking revenge for the Franco-Prussian war by trying to court Russia into an a permanent alliance with it and Austria and trying to prevent conflict
Credit Risk: Credit risk involves the possibility of borrowers, bond issuers or other counter-parties defaulting in transactions. In class we learned about various ways to estimate default probabilities, including historical data, CDS spreads, bond prices or asset swaps or Merton’s model. Sun Life has established a wide range of risk management controls to manage credit risks. Income and regulatory capital sensitivities are monitored, controlled and reported against their pre-established risk limits
This paper analyzes the reasons behind Otto von Bismarck’s conclusion of both the Dual Alliance of October, 1879 with Austria and the Reinsurance Treaty of June, 1887 with Russia. After the successful unification of Germany and its establishment as the strongest power in Europe, Germany was faced with a geopolitical dilemma; being the center of Europe with its periphery as a threat. Henceforth, Bismarck, now the Chancellor of Germany, abandoned his expansionist policy and replaced it with a more
Insurance is defined as the pooling of unanticipated losses by transfer of such risks to insurers, who agree to indemnify insured for such losses, to provide other pecuniary benefits on their occurrence, or to render services connected with the risk. (Rejda, 2011) And Lloyd’s of London is the best example of successful insurance underwriting market that services the world needs. This seminar paper will dwell on the topic of Lloyd’s of London. It will shortly focus on the origin of Lloyd’s and its
due to the management’s gross mismanagement, largely charging too little for premiums and failing to put away enough to pay out claims. The HIH leadership concealed financial losses by under-reserving (which boosts profits) and using "financial reinsurance" contracts to turn losses into gains. Williams, the chief executive, distracted the investment community with a string of takeovers, culminating in paying $300 million for Rodney Adler's FAI Insurances in 1998. Focusing on expansion while neglecting
5. Speciality coverages 5.a Liberty International Underwriters This devision of Liberty Mutual which focuses on global speciality lines insures a large variety of specialized risks through the independent broker system. From a demographic perspective this business field is divided in four core geographic areas which are the LIU Asia Pacific, LIU Canada, LIU US and LIU Latin America. LIU Asia with its headquarter in Sydney follows the concept of an integrated risk approach. All major activities
There are four factors which could be held accountable for World War I; militarism, alliances, imperialism and nationalism. Militarism is the expansion of armies and navies, alliances refer to the webs of pacts and agreements that countries made with each other, imperialism is the taking over of other countries, and nationalism is the promoting of one’s own country and propaganda against either other countries or countries which were opposition of your allies. All of these four factors were partially
Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Research is a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. According to Clifford woody, “ Research comprises defining and redefining problems, formulating hypothesis or suggested solutions
including financial reporting, journal entries, and most importantly, checks and wire payment processing” (“Lessons Learned,” 2014). Mueller was an accounting manager of the reinsurance division at one of ING’s offices. He stole almost $8.5 million in a little over four years. Mueller’s department at ING was the reinsurance division, which gave him the ability to approve company checks of up to $250,000. He embezzled this significant amount of money from his employer by requesting
All living organisms are known to make a mistake once in their lifespan. That is the way of life since nothing is perfect in the universe. In science, mistakes are created here and there, but scientists are able to learn from to them to fix any issues. Without flaws, small or big, in the work, new ideas or answers will not be developed. Mistakes, of any size, can be a leap to making new discoveries. As stated above, unplanned occurrences made during experiments does not have to a really big one
A. Plan of Investigation The focus of this study is the effect that Otto Von Bismarck's leadership and politics had on Pre-World War One tensions in Europe. This study investigates to what extent the actions of Otto Von Bismarck led to World War One. The focus of this study is the period between Bismarck's appointment to Minister President of Prussia on September 23, 1862 and the Austro-Hungarian declaration of war on Serbia on July 28, 1914. Bismarck's earlier career is discussed briefly but only
Bismarck's Foreign Policy „Versuche zu dreien zu sein, solange die Welt durch das unsichere Gleichgewicht von fünf Großmächten bestimmt wird!“ This was the general formula of Bismarck’s foreign policies meaning “When there are five great powers be one of three.“ The five great powers at that time were France, England, Russia, Austria-Hungary and the new united Germany. In foreign affairs, above all he wanted to keep peace in Europe, refusing further expansation, so that the strength of
Introduction: We are here analyzing the deal of Heinz which happened with 3G capital and Berkshire Hathaway. If we look into the motives of the deal .The main objectives are : • To diversify into ever growing food business by Berkshire Hathaway. • To somewhat focus on the food business in case of 3G capital by firstly acquiring Burger King then Heinz. • Heinz which is synonymous to ketchup across the world makes the deal lucrative for both the parties as all the channels and capabilities of Heinz
Definition Enterprise risk management is a continuous process in which a business plans, organizes, leads and controls it activities in order to minimize the occurrences and impacts of risks (Rouse, 2010) Enterprise risk management is an ongoing process of risk management which should be implemented strategically at every level of a company. It ensures that all risks are identified and managed according to the company’s risk appetite (Committee of Sponsoring Organizations of the Treadway Commission
Great War, also known as The First World War, lasted for four year (1914 to 1918). It brought a huge development of war technics and weapons. More number of countries had been involved in the Great War than any previous war. It involved the mobilization of the whole nations, not just an enormous army that turned the war into a “total war”. (Clare 6) However, historians are still arguing about the major cause of the World War I. The major cause will be one of the four long-term causes of WWI, which
September 11, 2001, nineteen men hijacked four fuel-loaded US commercial airplanes bound for west coast destinations. 2,996 people were killed. Less than a month after, U.S. troops invaded Afghanistan in an attempt to dismantle, al-Qaeda. Two years later, the United States invaded Iraq and deposed of President Saddam Hussein. Our military involvement in Afghanistan turned into the longest-running war in U.S. history. With all these costs, many questions followed. Before any forensic proof, the term
The Extent to Which the First World War was Caused by the Alliance System Many historians have debated about the main causes of World War I. The importance of the alliance system, which was developed in Europe in the decades before, as a cause for the war is still an important topic that historians debate today. The alliance system was the division of two armed camps between the European major powers: the Triple Alliance (Germany, Austria-Hungary and Italy) and the Triple Entente (Britain