Functions
Almost all insurance companies have a reinsurance program. The ultimate goal of that program is to reduce their exposure to loss by passing part of the risk to loss to a reinsurer or a group of reinsurers. In the USA, insurance, which is regulated at the state level, permits an insurer only to issue policies with a maximum limit of 10% of their surplus (net worth), unless those policies are reinsured. In other jurisdictions allowance is typically made for reinsurance when determining statutory required solvency margins.
Read more about this topic: Reinsurance
Famous quotes containing the word functions:
“Those things which now most engage the attention of men, as politics and the daily routine, are, it is true, vital functions of human society, but should be unconsciously performed, like the corresponding functions of the physical body.”
—Henry David Thoreau (1817–1862)
“If photography is allowed to stand in for art in some of its functions it will soon supplant or corrupt it completely thanks to the natural support it will find in the stupidity of the multitude. It must return to its real task, which is to be the servant of the sciences and the arts, but the very humble servant, like printing and shorthand which have neither created nor supplanted literature.”
—Charles Baudelaire (1821–1867)
“In today’s world parents find themselves at the mercy of a society which imposes pressures and priorities that allow neither time nor place for meaningful activities and relations between children and adults, which downgrade the role of parents and the functions of parenthood, and which prevent the parent from doing things he wants to do as a guide, friend, and companion to his children.”
—Urie Bronfenbrenner (b. 1917)