Life Reinsurance facilitation

Life and non-life reinsurance are different. One of the major differences is the prominence of the role of the reinsurance facilitator in non-life reinsurance - more than 75 percent of non-life business is transacted through facilitators. This compares with only 5 percent transacted in life reinsurance. There are 3 reasons why 1X Financial Reinsurance Facilitation can play a prominent role:

• The first reason - In spite of the size of the market we are keen to write this business .
• The second reason - We have the required specialization , technical life expertise and can add value to the clients.
• The third reason - Along with Reinsurance Facilitation we are capable of providing all services, such as product development and medical underwriting, to clients.

1X Financial

reinsurance facilitation- Life Insurance

The traditional proportional cover and facultative cover are much simpler. The purchase of life reinsurance as a capital substitute requires strong expertise in three areas.

• First, life insurers will always need to assess the cost of reinsurance and compare that against the cost of capital.
• Second, reinsurance structures that are efficient from a capital perspective are much more complex than the traditional proportional cover .
• Thirdly, reinsurance structure needs to be customized. Each life insurer has unique requirements regarding its diversification benefit, which is the key component of the capital requirement. Some life insurers experience different levels of exposure to various kinds of risk, such as market, lapse or longevity. Reinsurance cover needs to be designed specifically to address the specific scenarios driving capital requirements.