Price of Non-proportional Reinsurance based on Experience Rating [Cena v neproporcionálním zajištění na základě Experience Rating]

Submitted article is aimed at topic of reinsurance. Currently, reinsurance is an essential part of insurance products business. Regarding to the fact that reinsurance could have different forms and each form has specific features, it is needed to concentrate on individual forms. The article has a goal to get closer and outline nonproportional type of reinsurance and analyze the pricing process in non-proportional reinsurance. Particular subject of analysis is determination of price of excess of loss reinsurance based on Experience Rating method using Burning Cost and Probabilistic Rating models. Thereafter, different calculation approaches are compared between each other and the article is analyzing difficulties arising out of mathematical methods, which are based on historical data and then statistically induced into the prediction of future development of the reinsurance cover.