A Brief History of Reinsurance

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“A Brief History of Reinsurance” David M. Holland, FSA Vice Chairman Munich American Reassurance Company ACLI Reinsurance Executive Roundtable January 15, 2008 The Battle of Sluys (Flanders) – 1340 The Beginning of The Hundred Years War 01/02/2008 2 The Oldest Known Reinsurance Contract July 12, 1370 – Goods Shipment Genoa – Sluys 01/02/2008 3 01/02/2008 4 •The History of Reinsurance •Oldest known treaty - July 12, 1370 •Written in Latin •Covered the dangerous portion of shipping goods from Genoa to Sluys in Flanders •Effected as a sale of goods 01/02/2008 5 Destruction of the City of Hamburg – 1842 The Illustrated London News – No. 1. 01/02/2008 6 The First Reinsurance Only Company Inspired by the Hamburg fire of 1842 December 22, 1842 - Invitation to deliberate on the founding of a reinsurance company in Cologne Cologne Re Statutes drafted in 1843 April 8, 1846 - Cologne Re founded Cologne Re’s first treaty - Oct./Nov. 1852 01/02/2008 7 01/02/2008 8 Reinsurance Pre-1900’s 1846 Cologne Re founded 1863 Swiss Re founded 1880 Munich Re founded 1886 Frankona Re founded 01/02/2008 9 History of Life Reinsurance 1844 first life reinsurance in England 1858 first life treaty on the European Continent 1865 -1880 Swiss was only life reinsurer on the Continent 1877 reinsurance association of 10 co.’s formed in Germany (which restricted activities of professional reinsurers in life reinsurance) 01/02/2008 10 Early Life Reinsurance in Britain “Beset by various difficulties and disputes” Direct companies did not always disclose their retentions or even retain any of the risk for their own account Reinsurance kept in force after some policies lapsed 01/02/2008 11 Life Reinsurance in England and Scotland 1849 17 Scottish life offices agreed on reinsurance regulations

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