ISR formula

thesuperactuarythesuperactuary
in CCIR.ARinstr

On Wiki page, it said ISR = TIR + NRE - ISE

I have question on NRE, since it is expenses from Reinsurane contract held, shouldn't we have to deduct that from total insurance revenue as well?

Thanks you

Comments

  • grahamgraham

    That seemed strange to me too, but that's definitely the formula given in the source. It may be because NRE is:

    • "Net Reinsurance Expenses from Reinsurance Contracts Held"

    versus

    • "Net Reinsurance Expenses for Reinsurance Contracts Held"

    It could be reimbursement the primary insurer receives from the reinsurer related to expenses the primary insurer incurred from handling claims that were ceded to the reinsurer. The source does not provided any explanation.

Sign In or Register to comment.