| Summary: | 碩士 === 淡江大學 === 保險學系保險經營碩士在職專班 === 97 === The main function of reinsurance is to share risks . Normally the insurance company is seldom to adjust its reinsurance strategy by considering the impact of the various reinsurance types to the level of retention, but follow its past experience rules to determine it. A persisting practice that the domestic insurance companies follow the rule of proportional reinsurance to cede the “business” to the reinsurance companies is to limit its capital growth as well as to jeopardize the underwriting profit deserved, though there is high commission of reinsurance paid back.
Through a case study to group personal accident insurance business of “K” Company, this dissertation discussed the affections of retention limit under transformation from surplus treaty of proportional reinsurance to WXL of non-proportional reinsurance. The main perspectives here are loss sharing for risks and possible loss saving of reinsurance operation. For loss sharing, the author determined the free reserves permitted under the original surplus treaty through ruin theory, then set a proper retention limit for the objective treaty ----- working excess of loss cover. And the author then compared the loss savings of reinsurance operation between the treaties above by setting the same free reserves permitted. The conclusion is that if the Company adapts working excess of loss for the group personal accident insurance business, it is proved that the transformation can reduce the cost of reinsurance operation without bothering the function of sharing risks of reinsurance. Therefore, the author would like to suggest the insurance company not only to care the retention limits of reinsurance, but also select the proper types of reinsurance.
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