Commutation in reinsurance


Commuting: in different forms has been practised for a long time, but it gained popularity only with the increase of run-off companies. A separate “commutation manager’ poition has been instated in a number of larger reinsurance companies, being in charge over the employees zvhose task is executing and monitoring commutation contracts. This practice entails constant knoivledge of modern techniques and procedures related to commutations, in line zvith requirements of insurance and reinsurance market. Innovations in this area, hoivever, do not become knozvn to the market participants at once, so those who decide to engage into commutations, besides given an opportunity to leaf through the publications and manuals containing mostly general information and guidance, are left on their ozvn in searchfor the best possible zvay to protect their interests and to ensuring the best financial effect has been achievedfrom the