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tratado de quota-parte

English translation: variable quota share treaty

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09:54 Aug 22, 2014
Portuguese to English translations [PRO]
Bus/Financial - Business/Commerce (general)
Portuguese term or phrase: tratado de quota-parte
Introdução de um novo tratado de quota-parte de 25% cedido na retenção do tratado proporcional de incêndio de 1.º Excedente;
Monica Merrill
United Kingdom
Local time: 01:15
English translation:variable quota share treaty
Explanation:
Under proportional reinsurance, one or more reinsurers take a stated percentage share of each policy that an insurer produces ("writes"). This means that the reinsurer will receive that stated percentage of the premiums and will pay the same percentage of claims. In addition, the reinsurer will allow a "ceding commission" to the insurer to cover the costs incurred by the insurer (marketing, underwriting, claims etc.).

The arrangement may be "quota share" or "surplus reinsurance" (also known as surplus of line or variable quota share treaty) or a combination of the two. Under a quota share arrangement, a fixed percentage (say 75%) of each insurance policy is reinsured. Under a surplus share arrangement, the ceding company decides on a "retention limit" - say $100,000. The ceding company retains the full amount of each risk, with a maximum of $100,000 per policy or per risk, and the balance of the risk is reinsured.

The ceding company may seek a quota share arrangement for several reasons. First, they may not have sufficient capital to prudently retain all of the business that it can sell. For example, it may only be able to offer a total of $100 million in coverage, but by reinsuring 75% of it, it can sell four times as much.

The ceding company may seek surplus reinsurance simply to limit the losses it might incur from a small number of large claims as a result of random fluctuations in experience. In a 9 line surplus treaty the reinsurer would then accept up to $900,000 (9 lines). So if the insurance company issues a policy for $100,000, they would keep all of the premiums and losses from that policy. If they issue a $200,000 policy, they would give (cede) half of the premiums and losses to the reinsurer (1 line each). The maximum automatic underwriting capacity of the cedant would be $1,000,000 in this example. (Any policy larger than this would require facultative reinsurance.)

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Note added at 1 hr (2014-08-22 11:00:44 GMT)
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http://en.wikipedia.org/wiki/Reinsurance
Selected response from:

Gaurav Sharma
India
Grading comment
4 KudoZ points were awarded for this answer

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Summary of answers provided
3variable quota share treaty
Gaurav Sharma
Summary of reference entries provided
IATE
Teresa Borges

Discussion entries: 5





  

Answers


1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
variable quota share treaty


Explanation:
Under proportional reinsurance, one or more reinsurers take a stated percentage share of each policy that an insurer produces ("writes"). This means that the reinsurer will receive that stated percentage of the premiums and will pay the same percentage of claims. In addition, the reinsurer will allow a "ceding commission" to the insurer to cover the costs incurred by the insurer (marketing, underwriting, claims etc.).

The arrangement may be "quota share" or "surplus reinsurance" (also known as surplus of line or variable quota share treaty) or a combination of the two. Under a quota share arrangement, a fixed percentage (say 75%) of each insurance policy is reinsured. Under a surplus share arrangement, the ceding company decides on a "retention limit" - say $100,000. The ceding company retains the full amount of each risk, with a maximum of $100,000 per policy or per risk, and the balance of the risk is reinsured.

The ceding company may seek a quota share arrangement for several reasons. First, they may not have sufficient capital to prudently retain all of the business that it can sell. For example, it may only be able to offer a total of $100 million in coverage, but by reinsuring 75% of it, it can sell four times as much.

The ceding company may seek surplus reinsurance simply to limit the losses it might incur from a small number of large claims as a result of random fluctuations in experience. In a 9 line surplus treaty the reinsurer would then accept up to $900,000 (9 lines). So if the insurance company issues a policy for $100,000, they would keep all of the premiums and losses from that policy. If they issue a $200,000 policy, they would give (cede) half of the premiums and losses to the reinsurer (1 line each). The maximum automatic underwriting capacity of the cedant would be $1,000,000 in this example. (Any policy larger than this would require facultative reinsurance.)

--------------------------------------------------
Note added at 1 hr (2014-08-22 11:00:44 GMT)
--------------------------------------------------

http://en.wikipedia.org/wiki/Reinsurance

Gaurav Sharma
India
Specializes in field
Native speaker of: English
PRO pts in category: 12
Login to enter a peer comment (or grade)




Reference comments


2 hrs
Reference: IATE

Reference information:
Domínio Seguro
Nota sobre o domínio reinsurance
Específico 1355831
Antónimo 1355873

pt

Termo resseguro proporcional
Fiabilidade 3 (Fiável)
Refª termo C.Pereira,Instituto de Seguros de Portugal,1993; Wikipédia. Resseguro, http://pt.wikipedia.org/wiki...#Proporcional [17-01-2011]

Data 24/09/2003

Termo resseguro de quota-parte
Fiabilidade 3 (Fiável)
Refª termo C.Pereira,Instituto de Seguros de Portugal,1993
Data 24/09/2003

en

Definição the reinsurance of part of an original insurance; premiums and losses are carried proportionally by both reinsurer and insurer
Refª definição Gerling Konzern

Termo pro rata reinsurance
Fiabilidade 3 (Fiável)
Refª termo Guy Carpenter > Glossary > Reinsurance Terms > Quota-share Reinsurance, http://www.guycarp.com/porta... [22.11.2012]
Data 24/09/2003

Termo proportional reinsurance
Fiabilidade 3 (Fiável)
Refª termo HM Revenue & Customs, UK, GIM8030 - Reinsurance and other forms of risk transfer: types of reinsurance: proportional reinsurance, http://www.hmrc.gov.uk/manua... [22.11.2012]
Data 24/09/2003

Domínio Seguro
Nota sobre o domínio reinsurance

pt

Termo resseguro contributivo
Fiabilidade 3 (Fiável)
Refª termo C.Pereira,Instituto de Seguros de Portugal,1993
Data 24/09/2003

Termo resseguro em quota-parte
Fiabilidade 3 (Fiável)
Refª termo C.Pereira,Instituto de Seguros de Portugal,1993
Data 24/09/2003

en

Definição a form of pro rata reinsurance (proportional) in which the reinsurer assumes an agreed percentage of each insurance being reinsured and shares all premiums and losses accordingly with the reinsured
Refª definição Guy Carpenter > Glossary > Reinsurance Terms > Quota-share Reinsurance, http://www.guycarp.com/porta... [22.11.2012]

Termo quota share reinsurance
Fiabilidade 3 (Fiável)
Refª termo Guy Carpenter > Glossary > Reinsurance Terms > Quota-share Reinsurance, http://www.guycarp.com/porta... [22.11.2012]
Contexto Quota share reinsurance is where the reinsurer takes on a pro-rata share of a particular risk or the total risks in a particular class of business in consideration for a similar percentage of premium, known as premium to quota share.
Refª contexto HM Revenue & Customs, UK, GIM8030 - Reinsurance and other forms of risk transfer: types of reinsurance: proportional reinsurance, http://www.hmrc.gov.uk/manua... [22.11.2012]
Data 24/09/2003

Termo contributory reinsurance
Fiabilidade 3 (Fiável)
Refª termo Gerling Konzern
Data 24/09/2003

Teresa Borges
Portugal
Specializes in field
Native speaker of: Native in PortuguesePortuguese
PRO pts in category: 48
Login to enter a peer comment (or grade)




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