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Life and non-life reinsurance are different. One of the major differences is the prominence of the role of the reinsurance broker in non-life reinsurance - more than 75 percent of non-life business is transacted through brokers. This compares with only 5 percent transacted in life reinsurance. There are 3 reasons why J. B. Boda Reinsurance Broker can play a prominent role :

• The first reason - In spite of the size of the market we are keen to write this business .
• The second reason - We have the required specialization , technical life expertise and can add value to the clients.
• The third reason - Along with Reinsurance we are capable of providing all services, such as product development and medical underwriting, to clients.

The traditional proportional cover and facultative cover are much simpler. The purchase of life reinsurance as a capital substitute requires strong expertise in three areas.

• First, life insurers will always need to assess the cost of reinsurance and compare that against the cost of capital.
• Second, reinsurance structures that are efficient from a capital perspective are much more complex than the traditional proportional cover .
• Thirdly, reinsurance structure needs to be customized. Each life insurer has unique requirements regarding its diversification benefit, which is the key component of the capital requirement. Some life insurers experience different levels of exposure to various kinds of risk, such as market, lapse or longevity. Reinsurance cover needs to be designed specifically to address the specific scenarios driving capital requirements.

We at J B Boda have the expertise to act as a Professional Life Reinsurance brokers for the Life Insurance Companies therefore we bring a perspective that can be valuable . For Life Insurers , reinsurance is a small percentage of cession.

As a broker we have the ability to develop a completely new solution and then find the reinsurance markets that can support it. Successful development and execution of these advanced structures requires a variety of expertise and skills: risk modeling, cost assessment, structuring solutions and selling new ideas to reinsurers.

It would be difficult for many small to medium-sized insurers also to have this full suite of capabilities, thus we as Reinsurance brokers can play a valuable role in structuring a Life Reinsurance program suiting the needs of the clients.

Contact Person:
Mithil Navalkar
mithil.n@jbbodamail.com