Reinsurance is defined as an insurer's insurance. A treaty arrangement or pooling method is normally employed whereby a proportional amount of risk or losses are transferred. Characteristics that the treaty arrangement and futures' markets share in common are highlighted. Hedging strategies...

The reason for purchasing property/liability insurance is to mitigate the risk associated with an unexpected catastrophic loss. Lenders, corporations and policyholders in general rely upon Best’s ratings when assessing the solvency of a particular insurer. Insurers in a strong financial...