Our reinsurance solutions are tailored to the needs of insurers to transfer risk on both General and Life policies. We enable our clients to grow faster, enter new markets, and manage their exposure intelligently.
Our platform is readily adaptable to local market requirements and insurance product innovation. Lexasure offers a combination of underwriting excellence, financial strength, and customized reinsurance solutions to worldwide exposures.
Our reinsurance solutions help improve leverage policyholder ratios and capital positions by assuming LTC, life, and annuity liabilities. We seek to provide exit strategies for discontinued life and annuity lines of business, closed blocks of in-force life and annuity business in run-off, and non-core life and annuity lines of business.
Lexasure offers multi-lined, and multi-territory reinsurance solutions focused on general reinsurance capacity or facultative reinsurance, open facilities, reinsurance treaty, surplus treaty reinsurance, and portfolio treaty reinsurance programs. We provide a broad range of General Reinsurance and Specialty Lines Reinsurance Products for policyholders.
We underwrite in broad classes of Aviation, Accident and Health, Agriculture, Bloodstock, Bond, Capital Markets, Construction & Engineering, Contingency, Credit and Surety, Financial Lines, Fine Art & Specie, Liability Lines & Warranties, Malicious Acts, Marine Cargo and Hull, Marine P&I and Energy Liability, Miscellaneous, Motor, Oil & Gas and Energy, Political Risk & Trade Credit, Political Violence & War, and Property.
Lexasure helps our clients to manage portfolio treaties of quota share and surplus lines for cedants to access ready reinsurance capacities for their risk portfolio.
Lexasure provides our local insurance clients with a platform to innovate new market opportunities and digitized operations through new go-to-market strategies that increase market share and growth capabilities while effectively managing risk.
Lexasure can also assist clients in developing strategies to enable reinsurance securitization for added capital.
We have access to global reinsurance markets through facultative reinsurance for complex and demanding risks. We understand the ever-changing needs of our clients and the fragmented reinsurance market forces. We provide proactive services and solutions that are cost-effective, competitive, and independent.
We actively work on specialized risks with values above US$100 million.
We provide innovative solutions to clients for their global reinsurance programs and maximize global reinsurance capacities at competitive risk premiums.
We leverage a highly effective network of reinsurance partners in targeted regions to increase penetration in the market and provide the level of reinsurance coverage optimal for your business strategy.
Lexasure improves leverage ratios and capital positions by assuming LTC, life, and annuity liabilities.
We broadly write reinsurance for health, critical illness, and medical insurance policies and seek to provide clients with exit strategies for discontinued life and annuity lines of business, closed blocks of in-force life and annuity business in run-off, and non-core life and annuity lines of business.
In recent years, the reinsurance industry has just begun a massive transformation with the advent of digital technologies.
Lexasure provides our reinsurance clients with reinsurance-as-a-service (RaaS) to automate the pricing and underwriting of reinsurance and the handling of claims and payments. This enables insurers to do business at the speed of digital, adapt to the needs of local markets, automate financial statements, reduce administrative costs, and ensure payments are made accurately and on time to policyholders.
The global reinsurance industry is dominated by many large global players outside the United States, including Munich Reinsurance Company, SwissRE, Hannover Re, Lloyd's, Berkshire Hathaway, Gen RE, Cigna, AIG, and China Reinsurance. These industry giants offer a wide array of reinsurance programs in global markets. But they may not be focused and adaptable to the needs of local and small- and medium-sized insurers in the Southeast Asia region.
The insurance industry has been slow to adapt to the expectations of insurers and consumers to drive financial services towards web-based, self-service products that are accessible from any computing device or mobile phone. During COVID-19, the core systems of reinsurance companies faced the dual challenge of operational disruption and profit pressures due to prolonged periods of low-interest rates.
Lexasure is driving this digital transformation to enable insurers to develop new products and services that they can sell to their customers.
In particular, using big data and analytics has allowed health insurers and reinsurers to understand policyholder risk profiles better.
We help our clients to develop more targeted products and services that meet the specific needs of their customers.
Our RaaS platform makes clients more competitive by streamlining workflow, reducing costs, and improving margins.
Life reinsurance can be a helpful way for life insurance companies to protect their financial condition — in the wake of a natural disaster, for example.
Life reinsurance helps individuals to protect their life insurance policy. Suppose a catastrophic event result in large-scale payouts to life insurance policies. In that case, the life reinsurance policy will provide a death benefit to the life insurance company, enabling it to continue paying out death benefits to the insured's loved ones.
In pro rata reinsurance, the reinsurer receives a percentage of the premium and pays a proportional share of losses above the ceding company's retention. The ceding insurer transferring the risk retains its financial relationship with, and legal obligation to pay claims to, the policyholder.
Lexasure's life insurance products provide financial protection for the life insurance company and the policyholder's beneficiaries. If the person insured dies under circumstances that cause a large number of claims, the life insurance company can still deliver the death benefit using Lexasure's life reinsurance policy.
Facultative reinsurance is a type of reinsurance arranged between a ceding company and a reinsurer such as Lexasure on a facultative basis. With a facultative reinsurance agreement, the reinsurer is not automatically bound to provide coverage for each risk the ceding company transfers to it. Rather, the reinsurer will selectively decide which risks to accept, depending on its risk appetite and underwriting capacity.
Underwriting facultative reinsurance begins with the ceding company submitting a proposal to the reinsurer, which outlines the specifics of the risk it wishes to transfer. The reinsurer then reviews this proposal to decide whether or not to accept it. If the reinsurer decides to do so, it will then negotiate the terms and conditions of the coverage with the ceding company.
One of the benefits of facultative reinsurance is that it allows the ceding company to selectively transfer specific risks to the reinsurer rather than transferring its entire book of business.
Facultative reinsurance can be more expensive than other forms of reinsurance, as the reinsurer is not automatically bound to provide coverage. As a result, the ceding company may pay a higher premium to the reinsurer to secure coverage.
Treaty reinsurance is insurance purchased by an insurance company from a reinsurer such as Lexasure, thereby giving the insurer more stability when unusual or major events occur. The two types of treaty reinsurance contracts are proportional and non-proportional contracts.
This type of reinsurance is a contract between the ceding insurance company and the reinsurer, who agrees to accept the risks of a predetermined class of policies over a period of time. When insurance companies underwrite a new policy, they agree to take on additional risk in exchange for a premium. The more policies an insurer underwrites, the more risk it assumes.Under surplus treaty reinsurance, the cedant determines the maximum loss it can sustain on either a pro rata or proportional basis and transfers all the excess risk to the reinsurer.
With automatic reinsurance, the reinsurer agrees to assume a set of risks from the ceding company without even being given prior notice in the future.
An insurer can reduce its exposure by ceding some of the risks to a reinsurance company such as Lexasure in exchange for a fee. Reinsurance allows the insurer to free up risk capacity and protect itself from high-severity claims.
By signing a treaty reinsurance contract, the reinsurer, and the ceding insurance company are forming a long-term business relationship. The long-term nature of the agreement allows Lexasure, as a reinsurer, and our client, the ceding company, to plan out how to achieve profitability with stability. The client can optimize the overall risk portfolio and growth potential of the primary insurer (factoring in updated regulations from local insurance regulators.)
Both facultative and treaty reinsurance arrangements can be written to incorporate an arbitrator on either a pro rata or an excess of loss basis. Leverage the world-class technical expertise of Lexasure in risk adjustment to design the reinsurance arrangement best suited to your needs.
Under proportional reinsurance, one or more reinsurers take a stated percentage share of each policy an insurer issues ("writes").
The reinsurer will then receive that stated percentage of the premiums and pay the stated percentage of claims. In addition, the reinsurer will allow a "ceding commission" adjuster to the insurer to cover the costs incurred by the ceding insurer (mainly acquisition and administration, as well as the expected profit that the cedant is giving up).The arrangement may be "quota share" or "surplus reinsurance" (also known as a surplus of line or variable quota share treaty) or a combination of the two.
Under a quota share arrangement, a fixed percentage (approx 75%) of each insurance policy is reinsured.
Under a surplus share arrangement, the ceding company decides on a "retention limit." The ceding company retains the full amount of each risk up to that limit, and the excess over this retention limit is reinsured.
Without reinsurance, the ceding company may only be able to offer a total of $100 million in coverage. But by reinsuring 75% of its policy risk, it can underwrite four times as much insurance, expand its customer base penetration, and retain some of the profits on the additional business via the ceding commission. The ceding company may seek surplus reinsurance to limit the losses it might incur.
Under non-proportional reinsurance, the reinsurer only pays out if the total claims exceed a stated amount.
For instance, the insurer may be prepared to accept a total loss of up to $1 million and will purchase a layer of reinsurance of $4 million over this $1 million. If a loss of $3 million were then to occur, the insurer would bear $1 million and recover $2 million from its reinsurer.
In this example, the insurer retains any excess loss over $5 million unless it has purchased a further excess layer of reinsurance.
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