Description: Presented at May 1996 Spring Meeting. Traditional reinsurers have become more conservative in recent years as the individual disability insurance industry continues to report poor financial results. Some reinsurers have exited the marketplace, while some others have raised rates, restricted certain coverages, tightened underwriting, and taken other actions to manage the risks. Thus, alternatives to traditional DI reinsurance are discussed.

Description: This presentation is a panel discussion, session 92PD, from the 2000 Annual Meeting of the Society of Actuaries, held October 15-18 in Chicago. The panelists provide an introduction to the role financial reinsurance can play in today's competitive environment. They define financial reinsurance by comparing and contrasting it with traditional reinsurance, and explain how financial reinsurance can play a role in meeting specific business goals. The panelists examine the financial reinsurance marketplace and the economic, regulatory, and strategic considerations, and discuss the concept of statutory and GAAP risk transfer and the related accounting guidance. Discussion from participants is included. From the Record of Society of Actuaries, Volume 26, No. 3.