European catastrophe-risk trading goes online. (Loss/Risk Management Notes Property/Casualty).Inreon, an Internet-based risk-trading platform for the reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. industry, has launched its European catastrophe product. The new online service delivers faster submission and response times, binding quotes from a panel of blue-chip reinsurers, increased transparency and improved management reporting. Reinsurance buyers (including both primary insurers and brokers) can use inreon's European catastrophe product and its facultative property risk-placement products for no charge.The catastrophe product is available to clients in 16 European countries. Transactions can be posted either for single layers or as multiple layers. Fixed response times set by the buyer ensure timely responses from reinsurance markets. The new catastrophe product offers a high level of flexibility, because negotiation is available with an online dialogue capability between trading partners. Clients also have the choice of using inreon's standard reinsurance terms or their own. Inreon decided to focus on catastrophe products because they lend themselves well to an electronic platform, said Chief Executive Officer Rob Bredahl. Catastrophe covers are widely syndicated and are relatively standardized compared with other treaty reinsurance products, and there is usually a shortage of catastrophe capacity in the market. "The need for a more efficient way to place catastrophe risks increased with the sad events of Sept. 11, Bredahl said. "Historical relationships were disrupted, forcing cedents and brokers to seek capacity from a wider group of reinsurers. New reinsurers have entered the marketplace and are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. more efficient distribution tools, and issues and uncertainty related to terrorism exposure and coverage are forced industry participants to reach out to new trading partners." Inreon provides insurers with an online trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. platform for reinsurance capacities and products. Currently, 20 primary buyers and 15 brokers, based in Europe and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , are trading on the platform. Active reinsures on the trading platform include American Re, Hannover Re Hannover Re (FWB: HNRGn), in German Hannover Rückversicherung AG, with gross premium of around €9 billion in 2006, is one of the five largest reinsurance groups in the world. Its headquarters are in Hanover, Germany. , Munich Re Munich Re AG, in German Münchener Rück AG (ISIN: DE0008430026), is the world's second largest reinsurance company with over 5,000 customers in 160 countries and has its headquarters in Munich, Germany. , Partner Re, St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery Re, Scor, Swiss Re, Wellington and Converium. |
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