Time for a change

[cruises8]

Kim, you may have noticed that I have not been at work in a while!!! Today is the end of my 3rd week at my new job. I got out of the reinsurance industry(which nobody usually knows about) and into the healthcare industry(which everyone knows about; good or bad!). This is a completely new position for me in an entirely new industry. The first few weeks have been a bit overwhelming at times, but so far so good.

I don't post that often anymore and most of the newer folks I have never met, but I just thought I'd give an update.

Also, baby Kailyn is doing great. She is 13 weeks old now and has over doubled her birth weight. It is unbelievable how quick they grow!

 

[BrApple]

great to hear everything is going well for you

 

[frenchblueC2]

I knew you were leaving the company, but no one told me exactly when. (I believe Phil informed me).
Grats to you for getting the hell out of reinsurance AND this company. lol I've pretty much had it myself. I hate reinsurance!

Best of luck to you in your new job. I'm happy for you.

 

[ElKy]

congrats and good luck!

 

[cruises8]

Thanks all! There are very few reinsurance jobs in this area. There are basically 3 companies in the state and I have already worked for 2 of them. This was great opportunity for me to get out and expand my resume.

 

[MAZDASPEED]

Wishing you continued success brother!! I'm sure you'll do very well!

 

[baco99]

nice! reinsurance is an interesting industry. definitely the dark horse of the business. a good opportunity to make some money too.

 

[95pgt-t]

at the sake of sounding dumb...wth is reinsurance?

 

[frenchblueC2]

Simplistic definition: it's insurance for insurance companies

http://en.wikipedia.org/wiki/Reinsurance

 

[cruises8]

Thanks Brian!

Kim, that is the exact answer I always gave to people.

 

[frenchblueC2]

I usually tell people I work for an insurance company, when they ask. Then some of them ask "what type of insurance". Then I just groan and say "property and casualty" and hope they stop asking friggin questions. :blackeye:
I tried to explain to my mom once what Run-off is, and how this company works, but I failed miserably at it. lol

 

[elraido]

who insures the company who insures the company who insures the company?

 

[LauraSVT]

who insures the company who insures the company who insures the company?

Fletch: "I'll have my people call your people."

Becky Culpepper: "Who are your people?"

Fletch: "Who are yours?"

Becky: "As I said, I'm not at liberty to say."

Fletch: "Well then I'm not at liberty to sell. I'll just have my people call each other then -- keep 'em busy."

Becky: [Hesitates] "Oh...okay. Well, here's my card. Keep me in mind."

Fletch: "Oh, I'll keep you in mind."

 

[cruises8]

who insures the company who insures the company who insures the company?

That's easy...the first company that was insured ends up insuring itself!!! No lie, this really happens.


Kim, I always said the same thing. I'd say that I worked for an insurance company. They would then inevitably ask what I did there. I would then say that I was in the collections department. The conversation usually ended there!!!

 

[baco99]

Simplistic definition: it's insurance for insurance companies

http://en.wikipedia.org/wiki/Reinsurance

i thought is was more like the buying and selling of high-risk policies...Reinsurers take the risk off mainstream insurance companies by buying the policies at a premium. They make money off the "spread."

 

[baco99]

who insures the company who insures the company who insures the company?

insurance companies have so much cash from premiums they hardly need insurance.

 

[frenchblueC2]

i thought is was more like the buying and selling of high-risk policies...Reinsurers take the risk off mainstream insurance companies by buying the policies at a premium. They make money off the "spread."

Thems be too much words to say.

 

[cruises8]

i thought is was more like the buying and selling of high-risk policies...Reinsurers take the risk off mainstream insurance companies by buying the policies at a premium. They make money off the "spread."

Yes and No. Reinsurance does spread the risk among insurance companies, but policies are not bought at a premium.

A VERY simplistic scenario...

Say Walmart buys a Worker's Comp policy from Allstate(oooh do I hate Allstate) and pays $10,000 in premium. Allstate then approaches Liberty Mutual and they come to an agreement that Allstate will pay Liberty Mutual 50% of the premium($5,000) they received from Walmart as long as Liberty Mutual agrees to pay Allstate 50% of any claim made by Walmart on that policy. Liberty Mutual is now reinsures Allstate.

From that point Liberty Mutual can then approach Prudential and come to an agreement that Liberty Mutual will pay Prudential 50% of the premium($2,500) they received from Allstate as long as Prudential agrees to pay Liberty Mutual 10%(of the 50%) of any claim made by Walmart on that policy.

The actual percentages and premium are negotiated between the insurance companies. This process can go on an on and on. Until the risk is spread over several insurance companies.

It can get very complicated. Instead of Allstate going just to Liberty Mutual, they can go to 20 different insurance companies and agree to pay each 5% of the premium if they each agree to a percentage of any claim. Then each one of those reinsurers can go and make agreements with 20 other insurance companies...

I don't know if this cleared things up or made it more confusing!!!