Online Reinsurance Exchange Adds Members.An online 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. exchange launched by two leading reinsurers last year has continued to add members, most recently through the participation of Germany's Hannover Reinsurance Co. and Zurich Re, a unit of Switzerland's Zurich Financial Services Zurich Financial Services Group is a major financial services group based in Zurich, Switzerland. Global operations North America The US consumer market is served primarily by Farmers Insurance Group the third largest personal lines property & casualty insurance Group. 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. said it would sell reinsurance capacity over Inreon, the Internet-based exchange, and write a full range of facultative risks--that is, coverage written on selected risks rather than on an entire portfolio. Zurich Re said it would focus initially on developing catastrophe products using CRESTAplus, a reporting standard for European storm exposures. The company sees Inreon's standardized approach According to International Convergence of Capital Measurement and Capital Standards, known as Basel II, the standardized approach is a set of risk measurement techniques for banking institutions. The term may be used in the context of credit risk or operational risk. as a good platform for implementing the standard. Munich Reinsurance Co. and Swiss Reinsurance Co. established Inreon--which stands for "insurance meets reinsurance online"--last year to provide online-transaction capabilities for standardized reinsurance products. The platform also has drawn St. Paul Re, Wellington Underwriting plc and French reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. Scor as participants. |
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