Reinsurance- a system of risk redistribution between insurers, in which the first (direct) insurer accepts all the risk from the insured on its own responsibility, and subsequently redistributes it among itself and other insurers. When an insured event occurs, the damage is compensated by the first (direct) insurer, after which the remaining insurers compensate him (the direct insurer) for the damage in accordance with the terms of the reinsurance agreement.

Coinsurance - a system of risk redistribution between insurers, in which the entire risk is immediately redistributed between several insurers. When an insured event occurs, each insurer immediately participates in compensation for damage in accordance with the share of responsibility assumed.

Reinsurer - an insurer that transfers to another insurer (reinsurer) part of the liability or all the liability for the risk accepted by it either from the insured or from another insurer.

Reinsurer - an insurer that accepts from another insurer (reinsurer) part of the liability or all the liability for a risk.

Insurance relationship systems

The following systems of insurance relations are distinguished: coinsurance, reinsurance, .

Coinsurance used as a method of distributing large property risks by dividing the risk among insurers. Thus, the insurance object can be insured under one contract jointly by several insurers. At the same time, the contract must contain conditions defining the rights and obligations of each insurer. If such an agreement does not define the rights and obligations of each of the insurers, they are jointly and severally liable to the insured (beneficiary) for the payment of insurance compensation under a property insurance agreement or the insured amount under a personal insurance agreement.

The activity of insurance pools is based on the principle of co-insurance - an association of insurers for joint insurance of certain categories of risks (aviation insurance, environmental insurance, etc.). Insurers jointly insure large risks, sharing responsibility among themselves.

Coinsurance is one method of sharing large property risks, but is rarely used in liability insurance. The implementation of this method is simple and suitable for most cases. Although there are problems. First, in case of large losses, all co-insurers will send separate checks. This can be burdensome if there are a large number of insurers participating in coinsurance. Secondly, an intermediary, when placing a large risk, will have to contact a large number of different co-insurers, each of which is willing to provide coverage for only part of the risk in accordance with its capacity.

Reinsurance- an integral element. Reinsurance ensures the financial stability of the insurance operations of any insurance company.

The Law of the Russian Federation “On the organization of insurance business in the Russian Federation” gives the following definition of reinsurance: “reinsurance is insurance by one insurer (reinsurer) under the terms of the risk of fulfillment of all or part of its obligations to the insured by another insurer (reinsurer) determined by the contract.”

Reinsurance there is secondary insurance of a previously insured risk in order to ensure the solvency of the insurer. In this case, the insurer who has concluded a reinsurance agreement with the reinsurer remains liable to the policyholder in full in accordance with the insurance agreement.

Reinsurance is a very specific area of ​​insurance relations. This is reflected in his terminology. Thus, the process associated with the transfer of all or part of the risk is called reinsurance risk, or reinsurance cession(Fig. 1). In this case, the reinsurer transferring the risk is called assignor, and the reinsurer accepting the risk - assignee. The risk accepted by the reinsurer from the reinsurer ( assignee from the assignor), in turn, is often subject to subsequent transfer in whole or in part to the next insurance company. This subsequent transfer of reinsured risk is called retrocession. An insurance company that transfers reinsurance risk to a third party is called retrocedent, and the insurance company accepting this risk - retrocessionary.

By transferring risks to reinsurance, the reinsurer receives the right to a bonus, i.e., a commission on the profit that the reinsurer can receive when implementing the contract.

Thus, reinsurance is secondary insurance of insurers against extraordinary risks exceeding the solvency of the insurance organization. This is the essence and main function of reinsurance.

The object of reinsurance relations between the assignor and the assignee are the property interests of the insurance company. Reinsurance is based on an agreement according to which one party - the assignor - transfers to the other party - the reinsurer (assignee), who in turn assumes the obligation to reimburse the assignor the corresponding part of the insurance compensation paid. The transfer process is called ceding risk, or reinsurance cession.

Rice. 1. Reinsurance process

1. primary insurance;
2. reinsurance (cession);
3. retrocession

The reinsurance agreement complies with the principle of compensation, which consists in the fact that the reinsurer is obliged to pay the cedant (reinsurer) the insurance amount, or insurance compensation, in proportion to the share of participation and only if the reinsurer has paid the due insurance amount (insurance compensation) to the policyholder. In this case, the reinsurer is obliged to provide the reinsurer with complete and reliable information about the assigned risk. This condition is called the principle of good will.

The object of reinsurance relations is the property situation of the given insurance company acting as the assignor. The reinsurer does not have any rights and obligations arising from the insurance contracts concluded by the reinsurer. In turn, the policyholder has nothing to do with the reinsurance agreements concluded by the reinsurer regarding the transfer of risks. The insurer is not obliged to notify the policyholder of its intention to transfer the risks taken to reinsurance.

There is a distinction between active and passive reinsurance. Active reinsurance involves transferring risk, passive reinsurance involves accepting it.

Types of reinsurance contracts

The long-term development of reinsurance relations has formed a number of types of reinsurance contracts. According to the form of mutually assumed obligations, reinsurer agreements are divided into:

• optional (optional);
• obligatory (mandatory);
• facultative-obligatory.

The earliest form of agreements were contracts facultative reinsurance. This agreement is an individual transaction relating to one risk. Its distinctive feature is that both the reinsurer and the reinsurer are given the opportunity to individually assess the risk: the assignor - in deciding how much should be left in his own risk (own retention), and the assignee - in deciding on the issues of accepting risk in a particular volume . The negative side of facultative reinsurance is that the cedant must transfer part of the risk before concluding an agreement with the insured. Due to this, the assignee has a short period of time for a detailed analysis of the resulting risk.

Agreement obligatory reinsurance obliges the assignor to transfer certain shares in all risks accepted for insurance if their total insured amount exceeds the insurer's own participation (guarantee) determined in advance. At the same time, this agreement imposes an obligation on the reinsurer to accept the shares of these risks offered to it. This type of contract is most beneficial for the assignor, since all predetermined risks automatically receive insurance coverage from the reinsurer.

Servicing obligatory reinsurance is cheaper for both parties compared to servicing facultative reinsurance. Therefore, in the practice of the international reinsurance market, obligatory reinsurance agreements are most often encountered.

Facultative-obligatory The (transitional) form of the contract gives the assignor the freedom to decide in relation to which risks and in what amount they should be transferred to the assignee. In turn, the assignee is obliged to accept assigned shares of risks on pre-agreed conditions. For the reinsurer, this form of contract may be unprofitable and unsafe, since the reinsurer, having analyzed the risks in the insurance portfolio, can transfer the most dangerous risks to reinsurance.

Therefore, “open coverage” contracts are concluded only with reinsurers who enjoy the full confidence of the reinsurers.

With obligatory-facultative reinsurance, obligatoryness is assumed for the reinsurer, and optionality is assumed for the reinsurer.

In general, reinsurance contracts are divided into two main groups:

• proportional reinsurance;
• disproportionate reinsurance.

Main forms of contracts proportional reinsurance are:

• quota, or share;
• extraordinary, or limit;
• quota-excessive, or mixed.

In addition, modifications of these forms are sometimes used, which are used depending on the goals.

Quota, or equity, contract is the simplest form of proportional reinsurance. Under the terms of this agreement, the reinsurer transfers to reinsurance, in a share agreed with the reinsurer, all risks accepted for insurance without exception for a certain type of insurance or a group of related insurances. In the same share, the reinsurer receives the insurance premium due to him, and he reimburses the reinsurer in the same share for all insurance losses paid by him upon the occurrence of an insured event, i.e., with a quota agreement, the assignee fully shares the losses of the assignor in a certain share.

By transferring risks to reinsurance, the reinsurer has the right to a commission in its favor, which, depending on the type of insurance, can range from 20 to 40% of the gross premium, as well as to a certain participation in the possible profit of the reinsurer received by it for the risks accepted for reinsurance, i.e. the reinsurer has the right to a bonus.

The main disadvantage of a quota contract is the need to reinsure to a large extent small and, therefore, not serious risks that, under other circumstances, the ceding company could hold on its own liability, retaining large amounts of premium.

The determining factor in reinsurance under an excess contract is the so-called “own retention”, which is a certain level of retention of the insured amount, within which the reinsurer retains only a certain part (limit) of risks on its responsibility, and transfers the rest to the reinsurer.

The insurer, as a rule, sets the limit of own liability at a certain amount in each risk group, but for one type of insurance (for example, ships, cargo, space objects, etc.). Thus, if the maximum of the reinsurer’s own participation (excess) is 100 thousand rubles, then all risks accepted for insurance within this amount are transferred to the reinsurer.

Upon conclusion of the contract extraordinary reinsurance excludes all risks whose insured amount is less than or equal to the number of shares of the insurer’s own participation established for a given portfolio.

Conversely, risks the insured amount of which exceeds the insurer's own liability are considered reinsured. The reinsurance percentage is the ratio of the reinsurer's share of participation to the insured amount of a given risk. It forms the basis for mutual settlements between the reinsurer and the reinsurer, both for reinsurance payments and for insurance compensation.

Excess reinsurance contracts are more profitable for the reinsurer than quota reinsurance contracts. The advantage is that maximum alignment of the insurance portfolio is ensured. In addition, under an excess reinsurance agreement, a smaller amount of insurance payments is transferred to the reinsurer (the assignor retains the entire set of small insurance risks on its own insurance liability).

Quota-excessive The reinsurance contract is a combination of the two types of reinsurance contracts listed above. The portfolio of this type of insurance is reinsured on a quota basis, and excess amounts of risk insurance in excess of the established quota (norm) are subject to reinsurance on the principles of an excess contract.

Non-proportional reinsurance, in contrast to proportional, where the main thing is the shared distribution of responsibility for risks (share of the insured amount, premiums, losses), is based on the division of responsibility of the parties for the loss.

With disproportionate reinsurance, the payment for the provided damage coverage is a certain part of the insurance premium, but this part is determined not in accordance with the reinsurer’s share of participation in the contract, but with the share of the loss. The purpose of such reinsurance is to provide a guarantee of the insurer’s solvency for accepted risks in the event of a major loss.

Non-proportional reinsurance is also used in all types of insurance where there is no limit on the insurer's liability (for example, in personal insurance). Its essence lies in the fact that the reinsurer himself pays for all losses up to the amount agreed upon in the contract, and the excess of this amount is subject to payment by the reinsurer, for whom a certain liability is also established.

Coinsurance(eng. coinsurance) – joint insurance by several insurers of the same object. This method of providing insurance protection is used, as a rule, when insuring large objects, when one insurance company is not able to take on large risks.

Coinsurance method is used relatively rarely and refers mainly to friendly companies, companies within insurance concerns or as a friendly act towards a partner.

Coinsurance is not a form of reinsurance however, along with reinsurance, it is a form of redistribution of insurance risks.

With coinsurance The policyholder may be issued joint or separate insurance policies based on the shares of risk accepted by each insurer. Each insurer's share of liability is determined in proportion to the premium it receives. In practice, it is customary for the co-insurer with a smaller share to follow the terms of insurance approved by the insurer with the largest share. When jointly insuring an object, insurance companies sign one insurance contract, which, along with the insurance conditions, contains conditions defining the rights and obligations of each insurer to insure this object.

One form of coinsurance is insurance pools, which have become widespread recently. Under this type of co-insurance, participants (members) of the pool bear joint liability for the risks taken for insurance. To manage the pool (risks that are the responsibility of the insurance pool), its participants create a temporary (for the period of validity of the contract) bureau, which acts as a representative of the pool. This bureau is not, as a rule, a legal entity. Also, the affairs of the pool can be managed by a specially engaged management company (often insurance brokers act in this capacity).

Thus, coinsurance is one form of providing sustainable insurance protection that uses the principle of cooperation between insurers.

It is important to distinguish coinsurance from double insurance, which is often a sign and manifestation of the insured’s bad faith. In case of double insurance, the total liability of the insurers exceeds the insured value and if an insured event occurs, the policyholder - if all insurers pay him the amount under the contract in full - will experience unjust enrichment.

In the coinsurance agreement must contain conditions defining the rights and obligations of the policyholder to the insurers (including with regard to payment of the insurance premium), as well as the insurers (all together and each individually) to the policyholder (including with regard to the insurance payment).

As a result, coinsurance is characterized by the following:

a) the policyholder is one person;

b) insurance is carried out in relation to one object;

c) under one agreement;

d) jointly by several insurers;

e) for the same insurance risk.

Article 953 of the Civil Code provides that if the co-insurance agreement does not define the rights and obligations of each of the insurers, they are jointly and severally liable to the insured (beneficiary) for the insurance payment.

Therefore, as a general rule, the Civil Code provides joint liability of insurers to the policyholder for insurance payment. This means that if the policyholder has the right to an insurance payment, he can demand it both from all insurers jointly and from any of them separately, both in full and in part of this payment.

In practice, it is accepted that the terms of the coinsurance agreement are formed by the insurer that bears the largest share of obligations to the policyholder. Such an insurer is usually called leading.

If there is an appropriate agreement between the co-insurers, one of them can represent all co-insurers in relations with the insured, remaining liable to him only in his share. Such an insurer must have a duly executed power of attorney from other co-insurers. Note that the identification of a leading (main) insurer does not transform the co-insurance agreement into an obligation with the participation of only one insurer or into a type of reinsurance.

Federal Agency for Education

GOU VPO Pskov State Polytechnic Institute

Department: “Finance and Credit”

Test

On the topic: “Co-insurance”

Completed by: Mikhailov D.K.

Group 611-1304U

Checked by: Panteleeva A.P.

Theoretical part

Introduction

With co-insurance, the insurance object can be insured jointly by several insurers. In this case, 2 or more insurers participate in certain shares in the insurance of the same object, issuing joint or separate insurance policies.

This determines the relevance of the study of this topic, as well as the fact that currently life cannot be imagined without the presence of insurance relations.

The purpose of the proposed work: study of coinsurance.

In accordance with the given goal, a number of tasks were set:

1. study the essence of coinsurance;

2. compare coinsurance with reinsurance.

The work consists of 2 parts: theoretical and practical.

The theoretical one is completely devoted to the problem of studying the essence of coinsurance, and the practical one involves an example of solving a specific insurance problem.

To write the work, sources of scientific literature authored by Gvozdenko, Shakhov and others were used, the legislative framework for social insurance was studied, and Internet resources were used.

1. The essence and concept of coinsurance

Co-insurance is insurance under the same contract of the insurance object by several insurers, i.e. splitting of responsibility for risks between these direct insurers. When an insured event occurs, all insurers who have signed the insurance policy (contract) take part in compensating the resulting damage (loss). In this case, everyone is liable to the policyholder only for a certain share (part) of the total insured amount.

Double insurance occurs if the object is insured for the same risk during the same period in several insurance companies and the insured amounts taken together exceed the insured value. This means that in the event of an insured event, the amount of insurance compensation due from insurers will exceed the total amount of damage. Behind double insurance there is often intentionality and the desire for illegal enrichment. If the fact of double insurance was discovered before the occurrence of the insured event, then options are possible with renewing insurance contracts with changes in the insured amounts and insurance premiums.

In the event that the fact of double insurance becomes known after the occurrence of an insured event, insurance companies must divide the damage among themselves and compensate the company - the original payer of compensation for the corresponding part of the overpayment, which is carried out as part of indemnity calculations.

Contribution is the right of the insurance company to contact other insurers who are similarly responsible to the policyholder with an offer to share the costs of damages among themselves. Contribution is calculated on the basis of the insured amount for each policy according to the principle of proportionality.

With co-insurance, the insurance object can be insured jointly by several insurers. In this case, 2 or more insurers participate in certain shares in the insurance of the same object, issuing joint or separate insurance policies. Each one in his own share for the insured amount. Rights and obligations between insurers are determined in agreed shares.

If there is an appropriate agreement between the co-insurers, one of them can represent in relations with the insurer, remaining responsible for his share.

Coinsurance is one of the types of insurance regulated by insurance legislation. In Art. 953 of the Civil Code of the Russian Federation provides that the insurance object can be insured under one insurance contract jointly by several insurers (co-insurance). If such an agreement does not define the rights and obligations of each of the insurers, they are jointly and severally liable to the insured (beneficiary) for the payment of insurance compensation under a property insurance agreement or the insured amount under a personal insurance agreement. In Art. 12 of the Insurance Law, co-insurance, as in the Civil Code, is defined as insurance of the same insurance object by several insurers under one insurance contract. In principle, this definition of coinsurance completely coincides with Art. 953 of the Civil Code of the Russian Federation.

Coinsurance refers to those types of insurance under the terms of which the insurance risk is subject to transfer or redistribution between several insurers. In other words, co-insurance is a type of obligation under the terms of which one creditor - the policyholder - transfers his risk to several debtors - insurers (meaning several insurance organizations) for insurance. An obligation with a plurality of persons on the side of the creditor or debtor is permitted by law and is expressly provided for in Art. 308 of the Civil Code of the Russian Federation, which regulates the procedure for fulfilling an obligation in which many persons participate.

In relation to the type of insurance obligation under consideration, co-insurance, in which several debtors participate (Article 321 of the Civil Code of the Russian Federation), gives the creditor (insured) the right to demand performance from each debtor (co-insurer), and each debtor (co-insurer), in turn, is obliged to fulfill the obligation equally with another, unless otherwise provided by law or agreement.

With regard to the fulfillment of obligations by joint and several debtors under co-insurance agreements, the legislator granted co-insurers the discretionary right to agree on conditions regarding the amount of liability of each co-insurer.

With a shared obligation, each of several debtors is responsible only for himself, only in his share, and each of several creditors has the right to demand performance only in a certain share belonging to him. In an obligation with a joint and several obligation, the creditor is given the right to choose to demand the proper fulfillment of this obligation both from all co-debtors jointly and from any of them separately, both in full and in part of the debt.

The right to choose the type of liability - joint or shared - is the subject of an agreement between co-insurers, who, as practice shows, in the vast majority of cases agree on shared liability. They are encouraged to do this by the economic component of the insurance transaction, namely the cost of the risk accepted for insurance (meaning the share of the insurance premium and, accordingly, the amount of liability).

The fact is that policyholders, as a rule, transfer large risks to co-insurance - risks with a significant insured amount, which, due to its size, in the event of an insured event, can negatively affect the financial position of the insurer and upset the positive balance of its insurance portfolio. And the insurers themselves try not to assume individual liability for major risks. Therefore, both policyholders and insurers when insuring large risks are quite satisfied with the design of shared co-insurance, according to which the total liability of co-insurers is strictly divided into specific and defined shares.

Obviously, these circumstances were also taken into account by the legislator when granting co-insurers a discretionary right related to the choice of the type of liability in co-insurance agreements.

Under co-insurance agreements, responsibilities between co-insurers can be redistributed not only regarding the payment of insurance compensation, but also according to the types of insured interests, if the insurance contract provides for the insurance of several objects at the same time. For example, in his opinion, it can be provided that one insurer is obliged to pay compensation when losses occur in the insured property, and another - when liability for causing harm to third parties occurs. In principle, this opinion deserves attention from a theoretical point of view and is interesting for insurance law in general. But from a practical point of view, it is debatable, since the legislator in Art. 953 of the Civil Code of the Russian Federation, regulating the procedure for transferring insurance risk to co-insurance, means only one object of insurance - in the singular and, accordingly, only one insurable interest. This follows from the direct interpretation of the law. Moreover, this provision is also provided for in Art. 12 of the Law on Insurance, which indicates that the same insurance object is transferred to co-insurance, and not several.

This regulation by the legislator is quite reasonable, since for coinsurance it is essential to share the risk of insurance payment, and not to separate the objects of insurance. This directly follows from the rule of law, which deals only with the shared responsibility of co-insurers for the payment of insurance compensation.

Consequently, if we adhere to the possibility of transferring two or more insurance objects for co-insurance, then for insurers in this case the economic meaning of co-insurance is lost. It is easier for insurers to divide the objects of insurance by entering into independent obligations under separate insurance contracts than obligations to pay insurance compensation, or within the framework of one co-insurance contract to divide the responsibility for insurance compensation among themselves. In other words, if we are talking about the division of insurance objects, it is advisable for each insurer to conclude an independent contract for one insurance object.

Consequently, in the first case we are talking about sharing insurance risks, which is called combined insurance, and in the second case, we are talking about sharing responsibility for insurance payment (indemnity or security), which is called co-insurance. By and large, for insurers from an economic rather than a legal point of view, these are homogeneous types of insurance using different methods of legal registration and legal construction.

2. Co-insurance and reinsurance

Reinsurance is insurance by one insurer (reinsurer) under the conditions specified in the contract for the risk of fulfillment of all or part of its obligations to the insured by another insurer (reinsurer).

The insurer who has concluded a corresponding agreement with the reinsurer remains liable to the policyholder in full (Article 13 of the Law “On the Organization of Insurance Business in the Russian Federation”). According to international insurance terminology, the reinsurer is called the cedant, and the reinsurer is called the assignee or assignee. The process of transferring risk to reinsurance is called cession. In case of tertiary placement (transfer) of risk, the assignee is called a retrocedent4, and the transfer process is called retrocession. The reinsurer who accepts the tertiary allocation of risk is called a retrocessionary or retrocessionary. The main difference between reinsurance and coinsurance is that, firstly, a party to the reinsurance agreement, along with the reinsurer, can only be the direct insurer (assignor), but not the policyholder. There is never any direct legal relationship between the reinsurer and the policyholder. Secondly, coinsurance is a simple division of risk between several insurance companies that assume responsibility for it in certain shares. In the case of reinsurance, the risk is distributed in a completely different way, different from the division of responsibility between partners of equal importance in terms of the activities carried out.

The insurance business was created to reduce the risks of economic activity, but it itself is a very risky type of business. Therefore, there is a need to insure the policyholder himself. For this purpose, the primary insurance system is complemented by coinsurance and reinsurance systems.

Primary insurance– is the provision of insurance protection to clients from other industries (individuals and legal entities). Most insurance companies deal specifically with primary insurance.

Rice. 1. Co-insurance scheme.

If the insured risk is very large for an individual insurance company, it can attract other companies as co-insurers and carry out “joint insurance” or co-insurance (Fig. 1). Coinsurance- This is the division of risk between different companies in the insurance industry itself. Each participant in such a contract is liable to the policyholder only for his part of the insured risk. At the same time, for the policyholder, the conditions and tariffs are set uniformly in all insurance companies.

When obligations for risks accepted for insurance exceed the financial resources of one insurance company, in addition to co-insurance, reinsurance can be used.

Reinsurance– this is a secondary placement of risk, a transfer of risk from the primary insurer to another insurance company. Reinsurance can be carried out both by reinsurance companies specially created for this purpose, and by ordinary insurers with the appropriate license. In any case, the meaning of reinsurance is to ensure the solvency of insurers - to insure those who provide primary insurance.

The birthplace of reinsurance is Germany. The first reinsurance company was formed in Cologne in 1846. In Russia, such a company first appeared in 1895 - “Russian Fire Risk Reinsurance Society”.

Rice. 2. Reinsurance scheme.

Risk reinsurance can be multiple. However, the primary insurer is fully liable to the policyholder.

Since reinsurance grew out of insurance, it is based on the principles inherent in insurance in general:

– the principle of the highest integrity (conscientiousness), by virtue of which the parties cannot distort the real state of affairs and must inform each other about all the circumstances of the conclusion and execution of the contract;

– the principle of compensation, which is implemented in the assignee’s obligation to pay his part of the risk to the assignor, but only after he has made the insurance payment in full to the insured.

Reinsurance is a necessary element of insurance activity, which is manifested in its functions:

– reinsurance allows insurance companies to accept large risks for protection;

– reinsurance increases the capacity of the national insurance market, redistributing the cost of risk around the world;

– reinsurance increases the guarantee of the insurer’s solvency;

– reinsurance serves as a tool for equalizing the insurance portfolio, thereby increasing the financial stability of the insurer.

Insurance portfolio is the total number of contracts in the insurance organization. A balanced (leveled) insurance portfolio contains a large number of contracts with low liability for each of them.

The insurer can insure the object under the terms and conditions of the risk of fulfillment of all or part of its obligations to the insured from another insurer (reinsurer) determined by the contract. In this case, the insurer who has concluded a reinsurance agreement with the reinsurer remains liable to the policyholder in full in accordance with the insurance agreement.

Practical part

Data for completing the practical task

Option #6

1. Carpets

The insurance value is 3*3000=9000 rubles. We will accept the insurance amount at the level of the insured value, which will be 9,000 rubles.

Events that led to the damage.

A device planted by terrorists goes off in the basement of your house. A wall in your apartment collapses, and your VCR dies under the rubble. A fire starts. 20 books are completely burned.

Let's calculate the absolute size of the conditional franchise.

Deductible = Sum Insured*N, where N is the deductible standard adopted by the insurance company.

The standard is 5%, then the absolute value of the deductible = 9000 * 5/100 = 450 rubles.

There is no damage.

U = D + C – O, where

D – actual value on the day of concluding the insurance contract.

C – expenses for salvaging property.

О – the value of the property remaining after the insured event and suitable for use. We do not take into account wear and tear of property.

Because with a conditional deductible, the loss is less than the deductible, then no compensation is paid.

Let's calculate the insurance premium.

Insurance premium = Basic insurance premium – benefit + force majeure.

Benefit = insurance premium * N, where N is the insurance company's benefit.

The insurance company provided benefits for 2 years of insurance - 10%.

Force majeure = sum insured * K, where K is the force majeure coefficient adopted by the insurance company.

As a force majeure hurricane and earthquake, the double risk fee will be 0.1% of the insured amount

SP b = TS*SS/100, where SP b is the basic insurance premium;

TS – tariff rate;

СС – sum insured under the concluded contract.

SP b = 3.8*9000/100 = 342 rub.

Force majeure = 9000*0.1/100 = 9 rubles.

Benefit = 342*10/100 = 34.2 rubles.

Insurance premium = 342 – 34.2 + 9 = 316.8 rubles.

The standard is 5%, then the absolute value of the conditional franchise = 3264 * 5/100 = 163.2 rubles.

Y = 3264 + 0 – 1224 = 2040 rub.

Because in case of a conditional deductible, the loss is greater than the deductible, then pay compensation. The compensation will be 2040 rubles.

SP b = 3.0*3264/100 = 97.92 rub.

Force majeure = 3264*0.1/100 = 3.26 rubles.

Benefit = 97.92*10/100 = 9.79 rubles.

Insurance premium = 97.92 – 9.79 + 3.26 = 91.39 rubles.

3. VCR

The standard is 5%, then the absolute value of the unconditional franchise = 6250 * 5/100 = 312.5 rubles.

Y = 6250 + 0 – 0 = 6250 rub.

Compensation = Loss – Deductible

Compensation = 6250 – 312.5 = 5937.5 rubles.

The compensation payment will be 5937.5 rubles.

SP b = 4.2*6250/100 = 262.5 rub.

Force majeure = 6250*0.1/100 = 6.25 rub.

Benefit = 262.5*10/100 = 26.25 rubles.

Insurance premium = 262.5 – 26.25 + 6.25 = 242.5 rubles.

4. Sheepskin coat

The standard is 5%, then the absolute value of the conditional deductible = 12500 * 5/100 = 625 rubles.

Y = 12500 + 0 – 0 = 12500 rub.

There is no damage.

SP b = 6.8*12500/100 = 850 rub.

Force majeure = 12500*0.1/100 = 12.5 rub.

Benefit = 850*10/100 = 85 rub.

Insurance premium = 850 – 85 + 12.5 = 777.5 rubles.

5. Radiotelephone

The standard is 5%, then the absolute value of the conditional deductible = 8500 * 5/100 = 425 rubles.

Y = 8500 + 0 – 0 = 8500 rub.

There is no damage.

Table 1

Insurance premium calculation
1. Objects of insurance	Carpet products		Video recorder	Sheepskin coat	Radiotelephone
2.Number of objects
3.Total insurance cost, rub.
4. Sum insured, rub.
5.Name of risk
6. Accepted tariff, %
7.Basic insurance premium, rub.
8. Benefit, rub.
9.Force majeure, rub.
10.Final insurance premium, rub.
Reimbursement calculation
1.Loss, rub.
2. Franchise, rub.
3. Compensation, rub.
4. Conclusion (pay compensation, refuse compensation)	Refusal to be refused	Pay compensation	Pay compensation	Refusal to be refused	Refusal to be refused

table 2

Conclusion

Co-insurance is the participation of two or more insurers in concluding the same insurance contract.

Co-insurance is insurance under the same contract of the insurance object by several insurers, i.e. splitting of responsibility for risks between these direct insurers. When an insured event occurs, all insurers who have signed the insurance policy (contract) take part in compensating the resulting damage (loss). In this case, everyone is liable to the policyholder only for a certain share (part) of the total insured amount.

Management of affairs under this insurance policy is transferred, as a rule, to the leading insurer (insurance leader), who bears a large share of responsibility and is authorized on behalf of all colleagues participating in it to accept the policyholder's application and receive the insurance premium. But the representative powers enjoyed by the leading insurer do not, however, change the provision that appropriate civil legal relations exist between each insurer who has signed the insurance policy and the insured by virtue of such an insurance policy. Coinsurance sometimes gives rise to so-called double insurance, which is prohibited by law in the loss insurance industries.

The basis of coinsurance is usually reciprocity, while reinsurance is carried out on a professional basis. This means that reinsurance protection in the form of a cession is provided by professional reinsurers1 who have declared reinsurance as their main activity. In other words, coinsurance is a simple division of risk between several insurance companies that assume certain shares of responsibility for it. In the case of reinsurance, the risk is distributed in a completely different way, significantly different from the division of responsibility between partners of equal importance in terms of the activities carried out. A larger or smaller share of liability in reinsurance goes to a different distribution system. Among other things, it is regulated in a special way, while co-insurance is subject to insurance legislation.

From a financial point of view, reinsurance appears to be more significant and effective in spreading risk than coinsurance, although the latter has long played an important role in covering certain large risks. Reinsurance makes it possible to achieve greater balance in the insurance portfolio, cover part of the administrative costs and ensure proper financial stability of the reinsurer, and therefore the protection of the policyholder himself. We must not forget that with co-insurance, the client is often “lured” by one or another “partner” co-insurer, while the reinsurer is interested in maintaining a stable portfolio of its reinsurer.

The insurance object can be insured under one contract jointly by several insurers (co-insurance). At the same time, it must contain conditions defining the rights and obligations of everyone.

Bibliography

1. Civil Code of the Russian Federation, Part II. Law of the Russian Federation “On the organization of insurance business in the Russian Federation”

2. Law of the Russian Federation “On the organization of insurance business in the Russian Federation” dated November 27, 1992. No. 4015-1 (as amended on December 31, 1997, November 20, 1999, March 21, and April 25, 2002)

3. Law “On Insurance” supervision of insurance activities on the territory of the Russian Federation, art. thirty

4. Gvozdenko A.A. Fundamentals of Insurance: Textbook. – M.: Finance and Statistics, 1998. – 304 p.

5. Folgenson Yu.B. Commentary on insurance legislation. M.: Yurist, 1999. – 284 p.

6. V.V. Shakhov "Insurance" Publisher: UNITY - 2003

Co-insurance is the conclusion of an insurance contract in relation to an object by several insurers at once, indicating in the contract the rights and obligations of each of them.

Coinsurance is carried out on the following principles.

1. The risk is divided among co-insurers in certain proportions.

2. Insurance conditions and rates are the same for all participating insurers. One of them serves as the lead insurer. He negotiates with the policyholder, receives and distributes the insurance premium, and settles insurance claims.

3. Each co-insurer is responsible to the policyholder for his part of the insured risk. As a rule, they are not jointly and severally liable to each other, although the Civil Code of the Russian Federation provides for such a possibility (Article 953).

Reinsurance is the transfer of risk from an insurer to another. It is used when obligations under insurance contracts exceed the financial capabilities of the primary insurer. Individual insurance contracts or parts of the insurance portfolio by type of insurance can be reinsured. The transfer of risk to reinsurance is accompanied by the transfer of the corresponding part of the insurance premium. An important feature of reinsurance is that, despite the fact of reinsurance of the risk, all liability to the policyholder for the insured risk is fully borne by the primary insurer. The reinsurance organization participates in repayment of its part of the damage, often after it has been compensated by the primary insurer.

Reinsurance relations are formalized by a reinsurance agreement. Other insurance organizations engaged in primary insurance or specialized reinsurance organizations can act as a reinsurer. As a rule, each insurance organization simultaneously transmits and accepts reinsurance contracts. Reinsurance significantly increases the ability of insurance organizations to accept large risks for insurance. The reinsurance market is international in nature; Almost all major Russian insurers reinsure their risks abroad, thus overcoming the limited financial capabilities of the domestic insurance market. The risk of insurance payment under a life insurance contract regarding the survival of the insured to a certain age or period or the occurrence of another event is not subject to reinsurance. Insurers licensed to provide life insurance do not have the right to reinsure property insurance risks assumed by insurers.

Article 953 of the Civil Code of the Russian Federation, with minor variations, gives approximately the same definition: “co-insurance - insurance of one object under one insurance contract jointly by several insurers.” In this case, the insurance object can be insured under one insurance contract jointly by several insurers. If such an agreement does not define the rights and obligations of each of the insurers, they are jointly and severally liable to the insured (beneficiary) for the payment of insurance compensation under a property insurance agreement or the insured amount under a personal insurance agreement.

The economic dictionary gives the following definition: Co-insurance is a method of leveling and distributing large risks between insurers, in which each of them enters into a separate contract with the policyholder; Some of the risk may be left to the policyholder.

The insurance business was created to reduce the risks of economic activity, but it itself is a very risky type of business. Therefore, there is a need to insure the policyholder himself. For this purpose, the primary insurance system is complemented by coinsurance and reinsurance systems.

As a result, coinsurance is characterized by the following:

a) the policyholder is one person;

b) insurance is carried out in relation to one object;

c) under one agreement;

d) jointly by several insurers;

e) for the same insurance risk;

e) in the same period.

Coinsurance is an institution designed to raise the level of insurance protection of the interests of the policyholder. What one insurer cannot do alone, they can do together. Equally, coinsurance contributes to the development of business ties between insurers, deepening and expanding production cooperation between them, which contributes to the development of the insurance services market. In this case, responsibility for the insurance risk is divided between several insurers by assigning to each of them a pre-agreed share of possible losses.

A co-insurance agreement differs from double insurance in that in the latter case there will be as many insurance contracts as there will be insurers, i.e. the policyholder enters into an independent contract with each of them. With coinsurance, there is only one insurance contract. This, however, does not exclude the possibility that even with co-insurance, each of the insurers issues a personal insurance policy to the insured for its share of obligations, but in legal terms there will still be one contract. By the way, an insurance policy with coinsurance can also be joint.

For joint insurance of large or especially large risks, insurers can create, on the basis of an agreement on joint activities, simple partnerships, which in insurance practice are called insurance pools. Within these pools, insurers can coordinate their activities to implement co-insurance agreements, distribute risks in the process of concluding them, specify general contractual obligations, and carry out other cooperation in the implementation of their obligations, including mutual ones. [hood]

The co-insurance agreement must contain conditions defining the rights and obligations of the policyholder to the insurers (including with regard to payment of the insurance premium), as well as the insurers (all together and each individually) to the policyholder (including with regard to the insurance payment).

Each participant in such a contract is liable to the policyholder only for his part of the insured risk. At the same time, for the policyholder, the conditions and tariffs are set uniformly in all insurance companies.

As a general rule, the Civil Code provides for joint and several liability of insurers to the policyholder for insurance payments. This means that if the policyholder has the right to an insurance payment, he can demand it both from all insurers jointly and from any of them separately, both in full and in part of this payment.

At the same time, the insurance contract may also provide for the insurers' shared liability to the policyholder. For example, the owner of a residential building insured his building against fire under one insurance contract simultaneously with three insurers. It is stipulated that the obligation of the first insurer is 50% of the cost of the structure, the second - 30%, and the third - 20%. Please note that payment of insurance compensation (sum insured) by one of the insurers does not automatically generate payment obligations for other insurers. Each of them has the right to challenge the legality of their own payment.

Co-insurance can take place both on the initiative of the policyholder, who, being unsure of the reliability of the insurance protection offered to him by one insurer, requires additional insurers to be involved in this matter, and on the initiative of insurers, each of whom individually doubts their own capabilities.

D. Bland provides a comparison of coinsurance and reinsurance (Figure 75). In the diagram, in each case the leader

Figure 75. Differences between coinsurance and reinsurance.

or the first insurer retains 40% of the risk - the difference arises only in the relations of the parties between themselves. In practice, it is accepted that the terms of the coinsurance agreement are formed by the insurer that bears the largest share of obligations to the policyholder. Such an insurer is usually called a leading insurer. Insurers that participate in coinsurance in a smaller share follow the terms of the contract (and, accordingly, the rules of insurance) adopted by the insurer whose share is the largest (i.e., they follow the leading insurer).

Largest share of responsibility
of the co-insurers determines his right to establish the basic conditions of the joint contract. For example, the liability of the first insurer is 38%, the liability of the next two insurers is set in equal shares 1:1. This means that when concluding a co-insurance agreement with three insurers in the amount of 1869 thousand rubles. the liability of the first insurer is determined in the amount of 710.22 thousand rubles. (1869 x 38\100). Subsequent insurers bear equal responsibility, and each of them is liable for insurance risks in the amount of 579.39 thousand rubles (1869 - 710.22 / 2), which is 31% of the total liability.

Consequently, priority in developing the terms of the contract, determining various clauses and additions belongs to the first insurer with a 38% share of responsibility. Upon the occurrence of an insured event, insurance payments are paid to the policyholder by insurers in the following proportion: 38% - 31% - 31% (an example is given according to).

Article 13. Reinsurance

(as amended by Federal Law dated December 10, 2003 N 172-FZ

Reinsurance is the activity of protecting by one insurer (reinsurer) the property interests of another insurer (reinsurer) associated with the latter's obligations for insurance payments accepted under an insurance agreement (main agreement).