Fakih Wahyudi, S.Sos., AAAIK, QIP, IPGDI, AMII, ACII

Risk Capital Management

2010-01-23T13:55:00.001+07:00

This is as an alert for insurance company.
Capital is very important part of insurance industry as capital is on risk to the the loss and claim. But, did you aware that you cannot optimalize your capital in everyway?
Capital as shown in the Balance Sheet is consist of 2 parts i.e:
1. Liquid Capital (i.e deposit; cash etc)
2. Unliquid Capital (i.e asset; receivable etc)
So what would you do when your company has to pay claim, but you do not spred or risk your capital?
Therefore, to find your REAL Capital you can optimize freely, you have to risk your capital into the following parameter:
A. Risk Capital to Core Business
This is the major part of the insurance company. Payment of claim is taken from the sources of
a. Capital, whether liquid or unliquid. Liquid capital is prepared for the small claims or claim under net retention. But for the huge claims, payment of claim enable to use their unliquid asset or bank facility or other instruements.
b. Reinsurance, as you may call it as a reinsurance recovery. Claim payment taken from other company by reinsurance mechanism.
No matter the sources, it will still expose your capital. For the small amount of claim, it is very dangerous part if you have a lot of claim which is fall under your net-net retention, it means that you will unable to optimalize your capital for investment because your capital turnover will be high. Another problem is, what happend if your have very frequent of small claims fall under your net-net retention, is you have satisfied capital? or you have no sufficient capital finance it? it may exposure to your company to bancruptcy.
Eventhough you have reinsurance programs, your capital still being exposed by the following:
1. You must pay the claim first before you can take recovery from reinsurance. Therefore you will loss opportunity of investment because of time lack between claim paid by using your capital and recovery.
2. You will cannot recovery paid claim to your reinsurer. Means the capital you had used is purely funded by your capital. In other words, you can't use your THIRD CAPITAL
By put the risk in your capital, you will able to anticipate those conditions.
B. Risk Capital to Investment
The power of your Balance Sheet is also rely on your investment. Please back to 2008 when the Global Financial Crisis is Coming, how many companies falls down. If your investment instrument dominantly in the stock market, then you will exposed to the market weakening. Just simple simulation like in 2008 global financial crisis. When your stock in the market is say 1000 lots and price per lot is say USD. 1,000 then your Balance Sheet put USD. 1,000,000 investment as capital (USD. 10*100*1,000). What happend then if your stock priced as 1 sheet for USD. 2.5, it will weakening the power of your Balance Sheet for 75%. If your Insurance Company or Bank Company, your Risk Based Capital (RBC) or Credit Adequacy Ratio (CAR) will falls down and make your company falls to unliquid company. Furthermore, you have to put this risk in your Capital management to anticipate this condition to prevent your company in the red number.
C. Risk Capital to Human Resource
This is also the most important part of your capital management. The risks coming from the following part i.e:
1. Your HR is uncountable in your asset type. If your company has high employee turnover you will need more fund to create other employee as good as or much better than before. Cost of it will be taken from your capital fund.
2. This also very urgent it is fidelity. Your business operation will also being exposed from your employee i.e in insurance industry like your employee do not deposit the premium but you have to pay the claim.

D. Risk Capital to Information & Communication Technology
This is use to your ICT development where your must create reserve from your capital for the ICT improvement. ICT is expensive and to fund it development will be takef from your capital. This reserve is absolute but very rare company want to do it because mostly the company would to improve their ICT if the have sufficient fund taken from their profit but do not reserve it.
E. Risk Capital to Legal
Company must aware that this business is very dynamic and regulation may change at anytime to meet market requirement. It will exposed to the company especially to your Balance Sheet. Simple example in Indonesia Insurance Industry for the changes of :
1. Minimum Paid Up Capital, this is urgent issue to against global market where the player must have sufficient capital to protect their insureds. Therefore, capital must be reserved to anticipate any changes as required by the regulator, therefore if any changes of government requirement then the company will easily to anticipate.
2. Sharia Reporting Basis, you may find it in the newest accounting standard report that the admitted company asset is for UJROH only and Tabarru find is not being recognize as company's Balance Sheet.

F. Risk Capital to Environment
Insurance company may also concern in this aspect. Company may not put their capital as their own purpose but also must be used for the Corporate Social Responsibility. Beside that, it will also affect to the insurance business for the class of business of Liability. It able increase insurer exposure for the Insured liability to environment that must be recovered by Insured.
Hope this will develop your awareness of your capital.
Thank you.

Fakih Wahyudi

Treaty Reinsurance Renewal Review 2010

2009-12-23T08:58:00.000+07:00

3rd Quarter 2009 was closed by super fantastic loss caused by Earthquake in Padang (30.09.2009).
The reason to state as super fantastic because no body expecting insurance loss will be that much, some (or most) of insurance company make an error in stating PML in purchasing Catastrophe cover and nobody can imagine if this error happend in Jakarta or Wes Jawa (Zone 3).
As an effect of this loss, all reinsurance company increasing their price in Indonesia and also it influenced by frequency of natural catastrophe was increased.
Final review of treaty renewal as below:
1. Adjustable increased as
2. %tage of MDP is increased
3. Price at risk layer relatively consistent
4. Price at Top Layer is expensive, this is because they will compensate their loss in risk layer into Toppest Layer.
Hope this review could assitfull.

fakih wahyudi

Reinsurance & Capitalisation

2009-05-20T15:04:00.000+07:00

Reinsurance business may exposed by many source of risk whether direct or indirect. The dependency of capitalization will be no doubt.
Every element of capitalization will has specific advantages and disadvantages.
Reinsurance capitalization could be evaluated by the following things i.e:
1. Equity Issuance
2. Debt Issuance
3. Retained earning
4. Reinsurance
In this context, we will explore about reinsurance aspect to capitalization.
Obtaining maximum of capitalisation could be achieved by limiting cost or reinsurance. Price of reinsurance will vary and evaluation by factoring risk and loss profile and portfolio and also statistics. Therefore the price of reinsurance will relatively flexible.
Obtaining higher capital could be achieved by insurer will exposed to small retained claim from huge catastrophe loss and less exposed to capital.
Reinsurance will stand to protect insurer's earning by reducing loss exposure to earning. reinsurance should be able to manage volatility and secure any prediction.

reinsurance in slight

2009-05-09T10:20:00.000+07:00

Reinsurance is an insurance for insurance company. Reinsurance is as a mechanism of risk transferring or “ceding” some of the financial risk insurance companies from various underwritten by insurance company to another insurance or reinsurance company furthermroe named as the reinsurer.
Reinsurance can be called as a highly complex global business but surely demanded in insurance business. Demand for this reinsurance surely to protect insurance against exposure beyond their financial ability say as affect of catastrophe that may bring equity go down that may also will chain with the financial security changes.

Reinsurance Modelling

2009-03-20T17:40:00.000+07:00

Reinsurance structure should has the right balance between risk and return therefore maximizing premium income and minimizing risk exposure will be main purpose of structuring treaty program of the company.
Structuring your treaty programs should consider the following things:

entity financial target
risk appetite (reinsured and reinsurer)
asset exposured
corporate plans
historical review and future target (strategic business goal)
catastrophe exposure modelling
domestic and international market review

for multi structure design company should also consider i.e insured/insurer risk appetite and also market pricing and the corporate risk transfer objectives.

All data should be elaborate and making simulation based on the history and expected event in the future. You will need discussion among underwriter and claim assessor. Reinsurance Underwriter should has optional it related to the simulation and future expected events.

As reinsurance manager, having analyze those documents, you should propose your analysis report to management with quantitative and qualitative analysis including frequency and severity and expected retention and it's exposure to equity.

The management will consider the following things before buying reinsurance such as:

data and your analysis report
profile analysis
risk driving to portfolio
simulation analysis

Final step should be analyze the structure options, it will related to insurer and reinsurers risk apptite, financial strength and your demand/supply power.

By having those stages the decision result will bring returns:

reinsurance structures/programs will bring good risk transfer balance between risk and premium
technical analysis, reinsurance analysis should an input to the underwriter
reasonable risk portfolio distrubution
profit growth.

thanks,
Fakih Wahyudi

Pendaki

2009-03-10T10:13:00.000+07:00

Alkisah ada 2 orang yang hendak mendaki sebuah gunung.
1 orang pendaki merupakan pendaki yang professional kita sebut saja dia bernama Yusuf.
1 orang pendaki lainnya adalah pendaki pemula bernama Wahyu.
Dalam perjalan mendaki gunung tersebut, bertanyalah si Wahyu kepada Yusuf.
Suf, kenapa sich dalam perjalanan mendaki ini harus ada batu besar dan jalan yang menonjol?
Kemudian Yusuf mengatakan kepada Wahyu, bahwa dengan batu besar tersebut serta jalan yang menonjol tersebut kita gunakan sebagai pijakan untuk mencapai puncak gunung tersebut.

Hikmah yang dapat kita petik adalah:
Untuk mencapai suatu kesuksesaan penuh sekali dengan aral merintang dan kerikil-kerikil yang harus dilalui.
Dalam norma beragama, seharusnya kerikil-kerikil tersebut merupakan cobaan manusia untuk menjadi manusia yang mencapai posisi puncak dengan demikian dia akan semakin matang.
Kalau kita perhatikan banyak orang mengeluh atas cobaan dan rintangan yang diterima sehingga banyak dari mereka berdoa "agar dijauhi dari segala cobaan". Menurut saya lebih baik doanya menjadi "agar kita dikuatkan untuk menghadapi musibah dan dapat melaluinya dengan ridho ilahi." atas cobaan tersebut maka kita menjadi manusia yang jauh lebih sempurna.
Selain itu, kesalahan fatal kita dalam berdoa adalah kita meminta ilahi memecahkan masalah kita dengan cara kita. Padahal Ilahi memiliki trilliunan cara untuk menghadapi masalah kita dan hanya Dia-lah yang tahu bagaimana solusi terbaik untuk kita. Sungguh manusia banyak sekali yang sombang namun tidak menyadarinya.

Inti dari semua ini adalah, jangan pernah mengeluh atas segala cobaan, hadapi dengan tegar karena Ilahi bersama kita dan yakinlah akan kekuatan doa dan ridhonya.

Wassalam,
Fakih Wahyudi

Reinsurance for Captive Company

2009-02-17T18:16:00.000+07:00

For the captive insurance company, at the development phase, reinsurance decision will taken highest important consideration. the company should need to consider the following things:

did company need reinsurance
what type of reinsurance required
what level of need reinsurance required
how to purchase reinsurance]

purchasing reinsurance is very influenced by the risk behaviour of the management whether he is risk averter (front to risk) or risk netral (do not matter about the risk) or risk avoider (do want to face the risk).

to influence the management decision to reinsurance, they must be remind for the function of reinsurance such as:

stabilisation of the corporate profitability

none insurance could predict claim expected for the following years precisely because claim fluctuation is uncontrollable. by reinsurance mechanism, it will help company to measure maximum claim should be paid by companys' own capital. therefore, bottom line of the balance sheet can be measure more reasonable.

provide large limit capacity

deciding your risk retention will very influenced by your equity. reinsurance will assist you to retain higher by not exposing your equity too much.

catastrophe protection

catastrophe protection is the most thing should be considered by underwriter. any catastrophe loss occurred, it will reduce your equity significantly, by reinsurance, it will protect your equity to do not have much exposure and you will able this exposure to your reinsurer.

factor of high growth of premium income

the underwriter must able to spread their risk and aware for their portfolio and profile such as expanding territory, sell variative product. by expanding the business, it will significantly increase your premium income but underwriter must ensure that they have sufficient protection.

underwriting process support

underwriter enable to get assistance from reinsurance underwriter (please take a note that most of reinsurance underwriter has good comparison risk assessment per region). this will assist the underwriter assess the risk accurately.

FURTHERMORE, YOUR MANAGEMENT MUST GIVE MORE ATTENTION FOR YOUR REINSURANCE PROGRAM AND MUST ENSURE THAT THEIR PROGRAM WILL RUNS WELL AND ABLE TO INCREASE THE PREMIUM INCOME AND GIVE MORE PROFIT TO THE COMPANY. FURTHERMORE, REINSURANCE MUST EXIST TO INCREASE THE RETURN ON EQUITY AND CREATING COMPANY VALUE.

Regards,

Fakih Wahyudi

3 calls

2009-02-16T18:11:00.000+07:00

life is so short, we have to manage our life carefully.
many people do not realize that 4ll SWT only call us for 3 times:

First Call is ADZAN
people only aware that ADZAN call is for pray purpose or pray time.
many people do not aware for the #meaning# of adzan, we must aware from ADZAN sentence for "WE WILL GIVE YOU HAPPINESS". this very meaningful of ADZAN means. by praying 4ll will give you happiness, do not translate the meaning of happiness is just for happy but it is multi meanings like glory, victory, wealth etc. well, if you are not happy; if you have too much loan or if you have any problem. you only need to pray and leave it to 4ll as the best solution maker. but, when you leave it to 4ll, don't ask 4ll to solve your problem by your own way because 4ll has a billions of solutions and 4ll know the best for us.

Second Call is Hajj
this is very fantastic call. no doubt that HAJJ spend a lot of cash (for Indonesian of course), means you must have a lot of money for HAJJ, is it? is that mean that if you do not have a lot of money you can't go for HAJJ? NO.... even you have a lot of money, young a good moslem, it doesn't mean you will get to HAJJ. if you don't have a lot of money not a good moslem, it doesn't mean you can not go for HAJJ. this 4ll rule, like I said early 4ll has billion ways for us.

Third Call is Maut
first and second call is for a moslem, and the third call is for everyone.
no doubt; dont wait because it will come to you.
soon or later, good way or bad way.
4ll the only one who know this.

this note is written for myself and anyone who read this note.

regards,
fakih wahyudi

Gain in Global Crisis for Reinsurance Company

2009-02-13T17:52:00.000+07:00

We believe that everybody were aware for the global crisis where a lot of company affected by the crisis and bring a loss to the company.
My experience in reinsurance treaty renewal that price increase due to global crisis.
In this sentence I just want to say that Reinsurance company will create a gain in the condition by the following terms:

rate of risk increased, no doubt it will increase the income.
insurance company (frontliner) will protect more. in this condition we should remember that the company will need reinsurance more or demand of reinsurance will increased. market will harder means reinsurer easier to elevate risk of charge.
insurance company will need more capacity. means pay more premium to reinsurer and toppest risk (relatively remote) lower exposure to reinsurance company.

This short note showing by global crisis reinsurance company will receive more premium for lower exposure and market will harder and elevate the risk charge will increase reinsurance company income.

warm regards,

fakih wahyudi

Cinta dan Doraemon

2009-02-11T11:42:00.000+07:00

Cinta itu jangan seperti NOBITA yang gampang nangis & putus asa
Cintan itu jangan seperti GIANT yang penuh emosi
Cinta itu jangan seperti SHIZUKA yang lemah
Cintan itu jangan seperti SUNEO yang sombong
Jadikan cinta itu seperti DORAEMON yangg penuh dengan keajaiban

tertanda
fakih

Pengajian

2009-02-11T10:03:00.000+07:00

Ujian Keimanan Umat IslamMarilah kita merenungkan salah satu firman Allah dalam suratAl-‘Ankabut ayat 2 dan 3:
Apakah manusia itu mengira bahwa mereka dibiarkan (saja) mengatakan:“Kami telah beriman”, sedang mereka tidak diuji lagi? Dansesungguhnya Kami telah menguji orang-orang yang sebelum mereka, makasesungguhnya Allah mengetahui orang-orang yang benar dan sesungguhnya Diamengetahui orang-orang yang dusta.
Ayat ini menjelaskan kepada kita bahwa salah satu konsekuensipernyataan iman kita, adalah kita harus siap menghadapi ujian yangdiberikan Allah Subhannahu wa Ta'ala kepada kita, untuk membuktikansejauh mana kebenaran dan kesungguhan kita dalam menyatakan iman,apakah iman kita itu betul-betul bersumber dari keyakinan dankemantapan hati, atau sekedar ikut-ikutan serta tidak tahu arah dantujuan, atau pernyataan iman kita didorong oleh kepentingan sesaat,ingin mendapatkan kemenangan dan tidak mau menghadapi kesulitan sepertiyang digambarkan Allah Subhannahu wa Ta'ala dalam surat Al-Ankabut ayat10:
Dan di antara manusia ada orang yang berkata: “Kami berimankepada Allah”, maka apabila ia disakiti (karena ia beriman)kepada Allah, ia menganggap fitnah manusia itu sebagai azab Allah. Dansungguh jika datang pertolongan dari Tuhanmu, mereka pasti akanberkata: “Sesungguh-nya kami adalah besertamu.” BukankahAllah lebih mengetahui apa yang ada dalam dada semua manusia”?
Bila kita sudah menyatakan iman dan kita mengharapkan manisnya buah imanyang kita miliki yaitu Surga sebagaimana yang dijanjikan oleh AllahSubhannahu wa Ta'ala. Maka marilah kita bersiap-siap untuk menghadapiujian yang akan diberikan Allah kepada kita, dan bersabarlah kala ujianitu datang kepada kita. Allah memberikan sindiran kepada kita, yang inginmasuk Surga tanpa melewati ujian yang berat. Apakah kalian mengira akan masuk Surga sedangkan belum datang kepadakalian (cobaan) sebagaimana halnya orang-orang terdahulu sebelum kalian?Mereka ditimpa malapetaka dan keseng-saraan, serta digoncangkan (denganbermacam-macam cobaan) sehingga berkatalah Rasul dan orang-orang yangberiman bersama-nya: “Bilakah datangnya pertolongan Allah?”Ingatlah, sesungguh-nya pertolongan Allah itu amat dekat”.(Al-Baqarah 214).
Rasulullah Shallallaahu alaihi wa salam mengisahkan betapa beratnyaperjuangan orang-orang dulu dalam perjuangan mereka mempertahankan imanmereka, sebagaimana dituturkan kepada shahabat Khabbab Ibnul AratsRadhiallaahu anhu, yang diriwayatkan oleh Imam Bukhari).
Sungguh telah terjadi kepada orang-orang sebelum kalian, ada yang di sisirdengan sisir besi (sehingga) terkelupas daging dari tulang-tulangnya, akantetapi itu tidak memalingkannya dari agamanya, dan ada pula yangdiletakkan di atas kepalanya gergaji sampai terbelah dua, namun itu tidakmemalingkannya dari agamanyaUjian yang diberikan oleh Allah kepada manusia adalah berbeda-beda.
Danujian dari Allah bermacam-macam bentuknya, setidak-nya ada empat macamujian yang telah dialami oleh para pendahulu kita:
Yang Pertama: Ujian yang berbentuk perintah untuk dilaksanakan, sepertiperintah Allah kepada Nabi Ibrahim Alaihissalam untuk menyembelih putranyayang sangat ia cintai. Ini adalah satu perintah yang betul-betul berat danmungkin tidak masuk akal, bagaimana seorang bapak harus menyembelihanaknya yang sangat dicintai, padahal anaknya itu tidak melakukankesalahan apapun. Sungguh ini ujian yang sangat berat sehingga Allahsendiri mengatakan: Sesungguhnya ini benar-benar suatu ujian yang nyata. (Ash-Shaffat 106).Dan di sini kita melihat bagaimana kualitas iman Nabi IbrahimAlaihissalam yang benar-benar sudah tahan uji, sehingga dengan segalaketabahan dan kesabarannya perintah yang sangat berat itupun dijalankan.Apa yang dilakukan oleh Nabi Ibrahim Shallallaahu alaihi wa salam danputeranya adalah pelajaran yang sangat berat itupun dijalankannya.Apa yang dilakukan oleh Nabi Ibrahim dan puteranya adalah pelajaran yangsangat berharga bagi kita, dan sangat perlu kita tauladani, karenasebagaimana kita rasakan dalam kehidupan kita, banyak sekali perintahAllah yang dianggap berat bagi kita, dan dengan berbagai alasan kitaberusaha untuk tidak melaksanakannya.
Yang Kedua: Ujian yang berbentuk larangan untuk ditinggalkan sepertihalnya yang terjadi pada Nabi Yusuf Alaihissalam yang diuji dengan seorangperempuan cantik, istri seorang pembesar di Mesir yang mengajaknyaberzina, dan kesempatan itu sudah sangat terbuka, ketika keduanya sudahtinggal berdua di rumah dan si perempuan itu telah mengunci seluruh pinturumah. Namun Nabi Yusuf Alaihissalam membuktikan kualitas imannya, iaberhasil meloloskan diri dari godaan perempuan itu, padahal sebagaimanapemuda umumnya ia mempunyai hasrat kepada wanita. Ini artinya ia telahlulus dari ujian atas imannya.Sikap Nabi Yusuf Alaihissalam ini perlu kita ikuti, di saat pintu-pintukemaksiatan terbuka lebar, pelacuran merebak di mana-mana, minuman kerasdan obat-obat terlarang sudah merambah berbagai lapisan masyarakat,sampai-sampai anak-anak yang masih duduk di bangku sekolah dasar pun sudahada yang kecanduan. Kita dituntut untuk selalu bisa menjaga diri kita,keluarga kita dan orang-orang sekeliling kita agar tidak terjerembab dalamkubangan kemaksiatan, serta menanamkan sifat mulia Nabi Yusuf Alaihi alSalam dalam diri kita dan orang-orang disekeliling kita.
Yang Ketiga: Ujian yang berbentuk musibah seperti terkena penyakit,ditinggalkan orang yang dicintai dan sebagainya. Sebagai contoh, NabiAyyub Alaihissalam yang diuji oleh Allah dengan penyakit yang sangatburuk sehingga tidak ada sebesar lubang jarum pun dalam badannya yangselamat dari penyakit itu selain hatinya, seluruh hartanya telah habistidak tersisa sedikitpun untuk biaya pengobatan penyakitnya dan untuknafkah dirinya, seluruh kerabatnya meninggalkannya, tinggal ia danisterinya yang setia menemaninya dan mencarikan nafkah untuknya. Musibahini berjalan selama delapan belas tahun, sampai pada saat yang sangatsulit sekali baginya ia memelas sambil berdo’a kepada Allah:“Dan ingatlah akan hamba Kami Ayuub ketika ia menyeruTuhan-nya;” Sesungguhnya aku diganggu syaitan dengan kepayahan dansiksaan”.Dan ketika itu Allah memerintahkan Nabi Ayyub Alaihissalam untukmenghantamkan kakinya ke tanah, kemudian keluarlah mata air dan Allahmenyuruhnya untuk meminum dari air itu, maka hilanglah seluruh penyakityang ada di bagian dalam dan luar tubuhnya. Begitulah ujian Allah kepadaNabiNya, masa delapan belas tahun ditinggalkan oleh sanak saudaramerupakan perjalanan hidup yang sangat berat, namun di sini Nabi AyubAlaihissalam membuktikan ketangguhan imannya, tidak sedikitpun ia merasamenderita dan tidak terbetik pada dirinya untuk menanggalkan imannya. Imanseperti ini jelas tidak dimiliki oleh banyak saudara kita yang tegamenjual iman dan menukar aqidahnya dengan sekantong beras dan sebungkussarimi, karena tidak tahan menghadapi kesulitan hidup yang mungkin tidakseberapa bila dibandingkan dengan apa yang dialami oleh Nabi AyyubAlaihissalam ini.
Yang Keempat: Ujian lewat tangan orang-orang kafir dan orang-orang yangtidak menyenangi Islam. Apa yang dialami oleh Nabi Muhammad Shallallaahualaihi wa salam dan para sahabatnya terutama ketika masih berada di Mekkahkiranya cukup menjadi pelajaran bagi kita, betapa keimanan itu diujidengan berbagai cobaan berat yang menuntut pengorbanan harta benda bahkannyawa. Di antaranya apa yang dialami oleh Rasulullah di akhir tahunketujuh kenabian, ketika orang-orang Quraisy bersepakat untuk memutuskanhubungan apapun dengan Rasulullah Shallallaahu alaihi wa salam besertaBani Abdul Muththolib dan Bani Hasyim yang melindunginya, kecuali jikakedua suku itu bersedia menyerahkan Rasulullah Shallallaahu alaihi wasalam untuk dibunuh. Rasulullah Shallallaahu alaihi wa salam bersamaorang-orang yang membelanya terkurung selama tiga tahun, mereka mengalamikelaparan dan penderitaan yang hebat. Namun penderitaan itu tidak sedikitpun mengendorkan semangat Rasulullah dan para shahabatnya untuk terusberdakwah dan menyebarkan Islam.Sebagai orang-orang yang telah menyatakan iman, kita harus mempersiapkandiri untuk menerima ujian dari Allah, serta kita harus yaqin bahwa ujiandari Allah itu adalah satu tanda kecintaan Allah kepada kita, sebagaimanasabda Rasulullah Shallallaahu alaihi wa salam, yang diriwayatkan Imam alTirmidzi :“Sesungguhnya besarnya pahala sesuai dengan besarnya cobaan (ujian),Dan sesungguhnya apabila Allah mencintai satu kaum Ia akan menguji mereka,maka barangsiapa ridha, baginyalah keridhaan Allah, dan barangsiapa marah,baginyalah kemarahan Allah”.
Mudah-mudahan kita semua diberikan ketabahan dan kesabaran oleh Allahdalam menghadapi ujian yang akan diberikan oleh Nya kepada kita.

AminUstadz Ma'luuful Anam, MA (Pesantren Virtual)

Reinsurance to your capital

2009-02-10T14:02:00.000+07:00

For your who work in accounting division.
People may know that Debt and Equity is the couple of the balance sheet.
Actually, there is another third content called REINSURANCE.
Here we will discuss REINSURANCE AS THIRD CAPITAL.
When insurance company underwrite the risk, they have limitation for the retention due to limitation of Capital.
By using REINSURANCE they can underwrite the risk beyond their capital. Say, when the company has equity for USD. 50 millions, they only prefer or allowed to underwrite/retain for 10% equal to USD. 5 millions.
Using REINSURANCE, they would able to retain the risk for more than USD. 5 millions (gross retention) and also able to underwrite the risk with sum insured for more than USD. 50 millions.
Originally, in reinsurance, insurer owe the capital of the Reinsurer, in their limitation, using Reinsurer Capital to underwrite the risk beyond their equity or retain risk more than their limitation or underwrite the risk and then transfer it for undesirable portion of the risk.
At the end, insurer will able to get higher premium income to the company and at the bottom result will create PROFIT to the company.
With the profit, insurance company will able to allocate portion of the capital say for Reserve and increasing asset.
Therefore, this brief analysis, we will aware that REINSURANCE is a major part of insurance business. Using REINSURANCE mechanism, insurance will able to:

Underwrite the risk with sum insured beyond their equity
Retain risk higher (gross retention)
Create profit
Increasing capital
A tool to develop the equity
Creating Value of the company
Attracting Investor to the company
Asset Development
etc.

Hope this brief analysis will usefull for you.

regards,

Fakih Wahyudi

bikin pedoman

2009-02-09T18:19:00.001+07:00

hari ini g bersyukur.
2 tahun gabung di reasuransi (Program Treaty) dan sekarang g memasuki tahun kedua mendesign (telah selesai) dan membuat Pedoman Reasuransi (on proses).
ternyata, banyak kekurangan dalam pengembangan reasuransi yang mampu meningkatkan capital perusahaan bahkan dapat mengangkat value dari perusahaan.
ini saya dapat dari beberapa references saat membuat pedoman.
semoga pedoman ini mampu membuka para financial analyst dan aktuaria sehingga mampu menghitung capital perusahaan dari program reasuransi.

salam,
fakih wahyudi