Autoglass Insurance Company (AIC) Reinsurance

[K4Pacific]

I'm new to the thread. I am VP-Sales & Marketing for our auto full glass product across America.

Can someone answer me what are the "benefits" of reinsurance besides more capital available?

 

[K4Pacific]

New to the Forum. I am VP-Sales and Marketing for AIC. We have an auto glass protection plan through my Insurance Company for a full glass policy for those that want full glass whether commercial vehicle or personal.

What are the Benefits of Reinsurance?

 

[xrac]

Spreading the risk, reducing exposure to a single case or group of cases. Kind of like buying a mutual fund with 100 stocks verus being owning one stock. With a single stock you can win big or lose big.

 

[djs]

A good example of why a glass company may want to reinsure.....

One day, I flew into Denver, they just had a hail-storm. It took out windows on virtually every rental car on the rental lots (fortunately, I had just picked mine up, didn't have a problem). This was hundreds of cars just on the rental lots, plus probably 1000's more in the local area.

While you wouldn't want to reinsure for small events, an event like this may cause more of a hit to reserves than you would want to take. I don't know what the numbers would look like, but you could reinsure so that an event that caused a loss of more than 100 car windows would be covered for reinsurance at 50%, than over 250 it would be covered at 80% (or 100%, or whatever).

Again, I made up the numbers, 100 windows probably isn't that big of a deal in one event.

Dan