Ep. 116: Reinsurance 101
Larry Schiffer is a partner at Squire Patton Boggs LLP. Squire Patton Boggs LLP is a firm with an extensive list of business law experts with offices in 20 countries across five continents. Larry’s expertise is in the areas of insurance, commercial, and reinsurance litigation as well as arbitration and mediation. He obtained his Law Degree from Albany Law School and his Political Science degree from City University of New York-Brooklyn College.
Today, Larry joins us to help explain how the world of reinsurance works and why it’s an absolute necessity for any business. He explains why he decided to become a political science major and the events that led him to his current career. He explains some of the terms used in reinsurance and cites examples of their use. Larry also describes what goes on during an arbitration situation and why it sometimes can take longer than a year to resolve.
“The world doesn’t function without insurance. You have to share risk in order to cover risk.” – Larry Schiffer
What you’ll learn:
- Larry’s story before venturing into the insurance industry.
- Why he chose to become a political science major.
- Larry’s definition of reinsurance and what makes it a business necessity.
- Terms used in reinsurance and an explanation of each of them.
- Catastrophe reinsurance and the number of reinsurers involved.
- The reinsurance market cycle and how it works.
- Climate change and how it factors into reinsurance.
- Why some reinsurance disputes are just not cost-effective.
- What a real insurance arbitration situation looks like.
- Factors affecting the duration of a dispute.
Connect with Larry
- Insurance is literally the engine that makes the world economy run.
- Reinsurance is the next level of risk spreading.
- The majority of disputes arise out of runoff situations.
- Anytime there is a massive disaster, there will be smaller companies that are unable to purchase enough reinsurance to cover themselves sufficiently.
This episode was brought to you by
Insurance Licensing Services of America (ILSA), America’s premier regulatory compliance experts. To learn more visit ILSAinc.com.