What Is General Insurance?

General insurance companies, these companies are the original insurers, operating various types of direct insurance business. When these direct insurance businesses need to pass on responsibilities through reinsurance, on this basis, these insurance companies handle reinsurance. Many of the branch companies that accepted the branch business were also the original insurers, and transferred the business directly underwritten to the original insurer who branched out the business. In this way, the two sides exchange business, both at the branch and the branch. The reinsurance business is just the "sideline" of these companies, and it also runs some reinsurance businesses. ^[1]

General insurance company

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General insurance companies, these companies are the original insurers, operating various types of direct insurance business. When these direct insurance businesses need to pass on responsibilities through reinsurance, on this basis, these insurance companies handle reinsurance. Many of the branch companies that accepted the branch business were also the original insurers, and transferred the business directly underwritten to the original insurer who branched out the business. In this way, the two sides exchange business, both at the branch and the branch. The reinsurance business is just the "sideline" of these companies, and it also runs some reinsurance businesses. ^[1]

This type of insurance company mainly deals with different types of direct insurance business, and also handles the division and reinsurance business. When the amount of direct insurance business they accept is large and the risks they take are also large, they need to handle the separation business; when the direct insurance business they have accepted is not yet saturated and they can still bear more risk liability, they also Need to go through the business. From the current point of view, most of the insurance companies engaged in direct insurance business also concurrently operate reinsurance business, that is, the branch company and the branch company. ^[2]

There are four types of contract reinsurance used by general insurance companies: ^[3]

1. Reinsurance on excess contracts. Surplus contract reinsurance means that when the insurance amount of all insurance business exceeds the retention amount of the original insurer, it will be distributed to the reinsurer in accordance with the proportion set in the contract.

2. Fixed contract reinsurance. Also known as proportional contract reinsurance. That is, the total limit for each dangerous underwriting amount is allocated by the original insurer according to the percentage established.

3 Fixed premium mixed contract reinsurance. That is, the mixed use of the two types of contract reinsurance will allow the original insurer to obtain more business than under the excess contract. Because the original insurer sometimes ca nt attract reinsurers if they only use the excess contract, a certain amount of contract is arranged at the same time so that some of the business can be processed in a fixed amount. There is no fixed form of fixed-value surplus mix, which can be based on the needs of the original insurer and the quality of the business, and is usually adopted in special circumstances.

4 Sub-contract reinsurance. Reinsurance reinsurance means that the reinsurer redistributes some of the reinsurance business it has received to other insurers. Because the reinsurer may concentrate on the same area or the same risk due to the business assigned by different branch companies, so that its accumulated reinsurance liability exceeds its underwriting capacity, it is necessary to transfer the excess to another insurer. In order to achieve the purpose of risk diversification.