Sentences with phrase «reinsurers pay»

Not exact matches

Without risk transfer, regardless of what the technical accounting regulations might say, there should be no reserve relief granted, regardless of the amount of money given to the cedant by the reinsurer; that money should be treated as a loan, because it will have to be paid back with interest.

When disasters are occurring, it may pay to wait until the season is near its end to buy reinsurers.

As a result, borrowers putting small amounts of money down ended up paying more for their mortgage insurance because of the pseudo-commission paid to the mortgage lender because of the captive reinsurer.

Most reinsurers are resisting posting collateral, but so long as reinsurance receivables don't get paid rapidly, and credit quality is low, the demand for collateral can only grow.

A few notes: 1) The higher the reinsurance reserve credit is relative to surplus, the greater the risk if the reinsurers can't or won't pay.

Whether internally or externally reinsured, the size of reinsurance credits relative to surplus raise solvency risk issues if reinsurers can't or won't pay.

Reinsurance does carry a risk, though, if the reinsurer can't or won't pay.

There is some credit risk there... how much do you rely on your reinsurers to pay claims in full?

The Bermuda reinsurers know that one day a change in their tax status may come (somehow forced to pay US tax rates — ask Bill Berkley), and that would lower earnings.

[1] Reinsurance is an arrangement in which the reinsurer, agrees to take on risks another insurance company, the «ceding company,» for a percentage of the premiums paid on the original policy (for specifics, see Reinsurance).

If reinsurers were playing the game that you claim the insurance companies are playing, namely, inflating the perceived risks in order to increase their profits, then any insurance company that saw through this game would stand to benefit by not paying the inflated prices.

Experts at the symposium said natural disasters would become more manageable financially for everyone if Congress would pass legislation that authorized the federal government to backstop insurers in a catastrophe, allow insurers and reinsurers to set aside large capital reserves tax - free to pay for catastrophes, and let households maintain tax - exempt disaster recovery accounts to help pay for rebuilding that's not covered by their insurance.

Home mortgage borrowers allege that bank, mortgage servicer, and reinsurer created a captive reinsurance scheme whereby they selected mortgage insurers for their customers, and the insurers then paid kickbacks to the Defendants for non-existent reinsurance services in violation of RESPA.

HUD's investigations have uncovered strong evidence that such arrangements attempt to disguise the fact that the referral fee paid by the primary title company to the reinsurer is being funneled to the brokerage's title company.