SRS Altitude LinkedIn Series Episode 3: What is Structured Reinsurance?

Structured reinsurance offers customized solutions for captive insurance companies - firms set up by businesses to insure their own risks. These captives typically cover their risks partially, not entirely. Structured reinsurance tailors coverage to meet the specific risk management needs of captives, protecting their limited capital from an unexpectedly high number of claims across various risk classes like Property, Liability, and Transport.

Key elements of structured reinsurance contracts include:

• Unconditional Multiyear Terms: Providing capital security over a longer planning period.
• Combined Lines of Business: Integrating coverage limits and deductibles for a more efficient, holistic approach to capital protection.

This customization ensures that captives are well-protected against an adverse frequency of covered losses.