Research On The Relationship Between The Risk Insured And Reinsurance

With the development of economy and technology, there is an expandingtendency in the insurable risks. As an important means of risk transfer and loss ofcompensation, insurance have already been accepted by more and more people. In theinsurance practice, the insurance means such as exclusions, deductibles, reinsuranceare widely used, but they always rely on subjective experiences. The risk insuredtheory can be the basis for the insurance theory and provide the scientific guidance forthe application of insurance means.This paper analyzes the relationship between insurance and risk, improves theconcept of the risk insured for further. This article explains how to choose reasonableinsurance means such as exclusions, deductibles, reinsurance under the riskcharacteristics of subject, making the residual risk of the subject be in line with theinsurable risk characteristics as maximum as possible.Reinsurance is one of the important insurance means, this paper makes anin-depth research on the relationship between the risk insured and reinsurance. Firstlyanalyzes how to choose reinsurance and reinsurance type according to the riskcharacteristics of the subject, then analyzes the relationship between reinsurancepremiums and retention, establishes the optimal reinsurance model in order tocalculate the optimal retention. Finally takes a number of certain types of businessproperty insurance loss data in recent years as an example, determines the bestretention of the subject to the property insurance company according to the optimalreinsurance model which is founded in the paper, verifies the availability andapplicability of the model.