An Introduction to the Financial Reinsurance Marketplace

Non-traditional reinsurance, financial reinsurance (or whatever you want to call it
these days) is alive and well. Albeit not necessarily in the same form you may have come to know in the past. Surplus relief makes up only a small portion of the market, not because of stigmas, rules, risk transfer or any other technical reason. Instead, the industry as a whole has done pretty well over the last few years and finds itself with balance sheets lopsided with capital by recent standards. So, why then, you ask, are so many interested in new “financially-focused” reinsurance transactions and what form are they taking? Writing in the SOA's Reinsurance newsletter, Jeff Burt attempts to shed some light on at least a few of them that are setting the stage for the
next generation of financial reinsurance.

http://www.soa.org/library/newsletters/reinsurance-section-news/2008/feb...