Compulsory reinsurance

In the obligatory reinsurance binds himself reinsurers ( assignee ) against the insurer ( assignor ), a certain amount of risk to take.

The primary insurer is obliged to transfer all risks that meet the contractual definition to the assignee. The reinsurer has no right of refusal. The principle of good faith prevails for the reinsurer . The reinsurer assumes the risks without examining the risks on a case-by-case basis, with the exception of the optional / mandatory reinsurance .

See also

• facultative reinsurance

literature

• Tristan Nguyen: Limits to the insurability of catastrophe risks : expansion possibilities through reinsurance, catastrophe bonds and insurance derivatives , Springer (2007), ISBN 9783835007994