ARe case studies
ARe · Put your knowledge to work in context.
The Associate in Reinsurance (ARe) is a professional designation offered by The Institutes for insurance professionals who work with or around reinsurance. It is aimed at people who need to understand how reinsurance programs are structured, sold, documented, and administered - including reinsurance underwriters, brokers, ceded reinsurance and claims staff, and insurers who buy protection. The ARe case studies are 5 cases and about 2,133 words.
1The Renewal That Doesn't Fit the Manual
A mid-sized regional insurer, Cedar Valley Mutual, has ceded property business to your reinsurer for six years under a quota share with a 60% cession and a 5% ceding commission. At renewal, Cedar Valley's new CFO asks for the cession to rise to 75% and the commission to rise to 9%, citing two years of elevated catastrophe losses and a shrinking surplus.
490 words, about 2 min2Choosing Between Proportional and Excess for a Growing Book
A specialty managing general agent, Northline, writes small commercial habitational risks and has grown premium from 18M to 52M in three years. It currently buys a 50% quota share from your reinsurer.
433 words, about 2 min3The Bordereau That Doesn't Reconcile
You are the treaty underwriter finalizing a 40% quota share on a casualty book. The cedent's most recent monthly bordereau shows ceded premium of 3.1M, but the premium reported on the signed treaty summary is 3.6M for the same period.
383 words, about 2 min4When the Cedent's Claims Handling Slows Down
Your reinsurer participates in a 30% quota share on a professional liability treaty. Over two quarters, the cedent's average time to close claims has risen from 90 to 160 days, and its case reserves have grown 25% while reported claim counts are flat.
415 words, about 2 min5The Catastrophe That Tests the Event Definition
A property treaty with a catastrophe excess of loss layer attaches at 10M per event with a 20M limit. A named storm crosses three states over four days, producing wind damage on days one and two and inland flooding on days three and four.
412 words, about 2 min