Fundamentals of Reinsurance

This text provides an in-depth examination of how the reinsurance industry works. It includes the basic concepts of reinsurance and provides practical illustrations of when and how reinsurance arrangements should be considered.

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Stories regarding the huge losses resulting from highly-speculative transactions in derivatives continue to dominate the news. In the face of increased scrutiny by the SEC, the financial and insurance industries now recommend that derivative dealers insure against these inevitable losses through reinsurance. In this text, Phifer provides an in-depth examination of how the reinsurance industry works, explains the basic concepts of reinsurance, provides practical illustrations of when and how reinsurance arrangements should be considered, and explains the application of reinsurance to speculative financial transactions such as derivatives.