Why use reinsurance?
Munich Reinsurance Company of Canada assists our cedents by providing:
1. Underwriting Assistance:
With their diverse books of business, reinsurers can provide the technical expertise cedents need to enter new lines of coverage or to write risks in areas of Canada that the underwriter is not familiar with. This helps cedents to broaden their book of business and expand their underwriting opportunities.
Reinsurance allows the cedents to write larger amounts of insurance. This helps solve problems on otherwise quality accounts.
Reinsurance eases the strain on the cedent's surplus during rapid premium growth. Premiums ceded to reinsurers are not included in the cedent's unearned premium reserve – which is carried as a liability on the cedent’s financial statement. As a result, the cedent’s premium to surplus ratio is reduced and there is enhanced ability to write business.
Reinsurance helps smooth the cedent's overall operating results from year to year generated by economic, social and natural forces. It protects the cedent's capital and surplus needed for growth as well as a cedent’s customers, shareholders and to some extent its employees.
5. Marketing Tool:
Reinsurance expands the cedent's ability to assume risk. This in turn, enhances the cedent’s image as a broad based market and a responsive insurer and can add confidence when in an unfamiliar coverage area.
6. Catastrophe Control:
Exposure to natural disasters, such as flooding in Manitoba and earthquakes in British Columbia, jeopardizes a cedent's financial integrity. Reinsurance protects the cedent against a single catastrophic loss or multiple large losses. Reinsurance also affords protection against casualty losses in which multiple insureds can be involved in one occurrence.
Reinsurance provides a means for the cedent to maintain a class of risk that the company has withdrawn from due to a line of business, geographic area or production source.
At MROC, we offer superior capacity and expertise for all forms of treaties, including proportional and excess of loss.
Our product lines include all of the traditional areas of Property and Casualty reinsurance, and are complemented by our flexibility and ability to tailor products to meet the most unique needs of our clients.
Our many value-added services include:
- Underwriting reviews of Property and Casualty portfolios
- Analysis of reinsurance portfolios and development of appropriate reinsurance programs and structures
- Specialised advice and consultation from the Munich Re Group of companies
All the above combine to make Munich Reinsurance Company of Canada the preferred choice for Canadian insurers.
Casualty Facultative Department
Our underwriters, located in Toronto and Vancouver, are specialists in all aspects of this line of business and have expertise in U.S. exposures and access to U.S. rating programs.
We write all types of Casualty risks including:
- Comprehensive General Liability including Buffer Layers
- Personal and Commercial Umbrella
- Automobile Liability including Accident Benefits and SEF/OEF # 44
- Professional Liability including Malpractice
- Wrap Up Liability
- Tenant's Legal Liability (if written in the client's casualty department)
- Non Profit Directors and Officers Liability for Condominiums
Beyond the usual needs of main street Canada’s commercial market segment lies a more advanced, risk assuming segment of insurance buyers. Their needs range from pure risk transfer, to risk sharing, to sophisticated claims partnerships, to outright segmentation of their more catastrophic liability exposures.
Typical Special Risk insurance clients are:
- Risk Managed and are focused on Corporate Governance and Catastrophe containment
- Risk Assuming with particular Risk Transfer needs; examples would include Reciprocals, Retention Programs, and Captives
- Financial 500 Companies with industry specific coverage needs
- International Firms faced with the ongoing task of evaluating and transferring exposures across a broad jurisdictional landscape
- Associations requiring a stable partner with the necessary sophistication to entertain industry specific coverage amendments
- Professional bodies seeking insurers and reinsurers who understand, converse in, and can add an actuarial dimension to their partnership dialogue
Property Facultative Department
Through our Head Office in Toronto and Regional Office in Vancouver, MROC's underwriters provide facultative reinsurance for individual risks. We also negotiate portfolio covers, including binding facilities, programs and semiautomatic agreements.
Dealing directly with insurance companies, we provide our clients with technical expertise, professional advice, training seminars and underwriting audits. We expand your ability to assume risk and enhance your image as a broad based and responsive insurer to your producers.
We accept risks on both a pro rata and an excess of loss basis. We write all types of Property risks including:
- Commercial & Personal property
- Inland Marine including Motor Truck Cargo, Warehousemen's Legal Liability, Jewellers and Furriers Block, Contractors Equipment
- Automobile Physical Damage For Fleets, Garages & Auto Dealers
- Crime Coverages such as In/Out Robbery & Broad Form Money and Securities
- Tenants Legal Liability
- Electronic Data Processing Equipment
- Course of Construction/Builder's Risk
- Hole in One