Reinsurance is insurance for an insurance company. And there is evidence of such transactions
dating back to 1799, so this is nothing new. For 2010 the total U.S. reinsurance premium was
estimated to be $118.5 Billion.
As part of their responsibilities, insurance companies
executives , and their actuaries, analyze the types of risks and geographic concentrations of
such and make a financial calculation as to the amount of risk and premium they wish to hold
“net” to themselves and then transfer (or sell) that excess portion of exposure to loss and
corresponding premium to reinsurers.
Once the insurance company has made that determination
they then enter into a reinsurance agreement (referred to as a treaty) with one or more
reinsurers who then assume, under contract, that portion of exposure to loss either on an excess
of loss (above a certain dollar amount) or pre-agreed upon percentage of each risk and each
premium dollar.
Reinsurer’s are subject to insurance regulation just as are the insurance
company’s they reinsure.
Every responsible insurance company strengthens its balance sheet
and “spreads” its risk by purchasing reinsurance.
Before commencing operations, AAIRRG
successful concluded a reinsurance treaty with many of the leading aviation reinsurers in the
world. Each is an highly-rated “A” reinsurer with a combined policyholder surplus (net worth) in
excess of $68.1 billion. They are:
AmTrust
Hannover Re
Lloyd’s
of London
Montpelier Re
Swiss Re
Reinsurance Explained
AAIRRG retains the first $500,000 of any one claim and all amounts
above that are fully reinsured up to the each of the respective policy limits.
American Airlines aims to cut 13,000 jobs The parent of
American Airlines wants to eliminate about 13,000 jobs — 15 percent of its workforce — as the
nation's third-biggest airline remakes itself under bankruptcy protection...
When Stupid is
Criminal This afternoon, 57-year old Steven Fay will appear in court in Massachusetts to face
criminal charges for being supremely stupid, recklessly stupid, deadly stupid. In what some aviation
attorneys say is extremely unusual, a private pilot has been indicted for involuntary manslaughter
for unintentionally crashing his airplane and killing his daughter...
Boeing Departure Shakes Wichita’s Identity as Airplane Capital
The crowd gathered at the local headquarters for Boeing was euphoric. The company had just won one
of the largest military contracts in history. Thousands of the resulting jobs, Boeing had promised,
would be headed here, to the sprawling manufacturing complex where residents have been building
airplanes for generations...
AirTran Ordered to Rehire Pilot Fired Over Safety Reporting AirTran Airways (AAI), a unit of
Southwest Airlines Co. (LUV), was ordered by the U.S. to rehire and pay more than $1 million in back
wages to a pilot fired in 2007 after he reported mechanical flaws...
Cost
of Job-Related Illnesses Exceeds Costs of All Cancers, Diabetes and Strokes A new
NIOSH-funded study from J. Paul Leigh, a professor of public health sciences at the University of
California – Davis, determined that the cost of job-related injuries and illnesses is $250 billion,
which is $31 billion more than the cost of all cancers and $76 billion more than the cost of
diabetes...
Safety is My
Co-Priority If you are operating under the impression that air show megastar Sean Tucker
confines his fancy maneuvers to his airplane, I'm here to tell you, he does not...
ARSA Congratulates Aviation Industry on Safest Decade
Aeronautical Repair Station Association (ARSA) Executive Vice President Christian Klein released the
following statement commending the aviation industry on its stellar safety record as outlined in a
recent Associated Press (AP) analysis...
Whooping
Cranes Grounded By FAA Just before Christmas, Operation Migration and its flock of whooping
cranes were grounded on an attempt to migrate south for the winter...
Officials move ahead with plans
for Reno air races The head of the Reno Air Races Association said Wednesday officials are
moving ahead with plans for this fall's competition despite a tragic crash at September's event that
killed 11 and injured more than 70...
Man charged in $630K fraud
involving FAA certifications A 57-year-old Cartersville man has been charged with defrauding
a Dubai government agency of hundreds of thousands of dollars by delivering bogus FAA approvals for
aircraft modifications, federal prosecutors said Tuesday...
American carriers see safest decade ever US-based airlines have just completed the country’s
safest ever decade for air travel. According to a recent study conducted by the Associated
Press, 153 people died in commercial aviation accidents over the last ten years, which amounts to
two lives for every 100 million passengers flown...
Notice: AAIRRG has been granted a
certificate of authority from the Montana Department of Insurance. This is not an offer
for insurance and no coverage may be bound or policies issued until the registration process has been completed with your individual state.
