Abstract
As with any other business that has a risk of any incident in the future, the insurance business also needs protection against the risks that may arise in the company so that the company does not lose. Therefore, the need for anticipation in organizing any claims submitted by the insurance company to Reinsurance Company so that insurance company may assign any or all of the risks to reinsurance companies. In the method of reinsurance excess-of-loss there is a certain retention limits that allow reinsurance companies bear no claims incurred on insurance companies. The results of this study showed the average occurrence of claims and the risks that may be encountered by Reinsurance Company during the period of insurance. The magnitude of the risk assumed by the reinsurer relies on the model claims aggregation formed from individual claim size distribution models and distribution models the number of claims incurred in the period of insurance. Besides the magnitude of risk was also determined from the retention limit of insurance and reinsurance method used.
Highlights
Today many loans are offered in a particular payment in Indonesia, and many individuals, community groups, or in the business world do credit and not a few who fail to pay because creditors die before the credit is paid off
This must be considered by reinsurance companies because in the event of a claim the insurance company will submit a claim to the reinsurance company
In the excess-of-loss method the reinsurance company accepts risks up to a certain value after going through a loss limit called the retention limit, which is suffered by the insurance company
Summary
Today many loans are offered in a particular payment in Indonesia, and many individuals, community groups, or in the business world do credit and not a few who fail to pay because creditors die (claims occur) before the credit is paid off. This must be considered by reinsurance companies because in the event of a claim the insurance company will submit a claim to the reinsurance company. Insurance companies can transfer some or all of the risks faced with reinsurance companies (Bowers et al, 1997)
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