What is the RAA?

The Reinsurance Association of America is a non-profit trade association of reinsurers and reinsurance brokers. Established in 1968, the association is headquartered in Washington, D.C.

Who are the Members of the RAA?

A list of current RAA members can be found here.

What is reinsurance?

Reinsurance is best thought of as "insurance for insurance companies," a way for a primary insurer to protect against unforeseen or extraordinary losses. Reinsurance serves to limit liability on specific risks, to increase individual insurers' capacity, to share liability when losses overwhelm the primary insurer's resources, and to help insurers stabilize their business in the face of the wide swings in profit and loss margins inherent in the insurance business. For example, reinsurance plays a critically necessary, though behind-the-scenes, role in the financial management of natural disaster losses.

In a reinsurance contract one insurance company (the reinsurer, or assuming insurer) charges a premium to indemnify another insurance company (the ceding insurer) against all or part of the loss it may sustain under its policies. Reinsurance contracts may cover a specific risk or a broad class of business. Reinsurance is a global business. Its international nature reflects a further spreading of risk and access to broader capital markets to help cover losses. About 40% of all U.S. reinsurance premiums, and two-thirds of all property catastrophe reinsurance premiums, are written by foreign reinsurance companies.

What is the purpose of the RAA?

The primary purpose of the Reinsurance Association of America is to advance the interests of the U.S. property and casualty reinsurance industry through effective government relations with state and federal regulatory agencies, legislators and other elected or appointed officials, and representation before judicial bodies. In addition, the RAA aims to build understanding of reinsurance regulatory issues and the reinsurance business among the media and other external audiences, and to serve the needs of its members and affiliates by providing information and assistance. What do RAA members and affiliates have in common?

RAA members and affiliates are all experienced and well-established providers of reinsurance or are reinsurance intermediaries. To become an underwriting member of the RAA, a corporation must:

• Be engaged in the assumption of property-casualty reinsurance from non-affiliated companies, and retain substantial risk.
• Operate as a licensed, authorized or accredited reinsurer in at least 25 states.
• Have capital and surplus of at least $100 million. Reinsurance departments of primary companies are eligible for RAA membership if they write at least $250 million in annual unaffiliated domestic reinsurance premiums.

To become an affiliate of the RAA, a reinsurance intermediary must:

• Be engaged, as its principal activity, in the placement of reinsurance risk from non-afilliated companies.
• Be licensed as a reinsurance broker or reinsurance intermediary.
• Affiliate membership is also open to non-U.S. reinsurers, U.S. reinsurers which do not qualify because of size, and life reinsurers.

What services does the RAA provide?

The RAA engages in a variety of activities that serve its members and affiliates by representing their collective interests, as well as providing information and analysis to audiences outside the industry.

• Legislation -- The RAA is an active advocate for reinsurance interests before state regulators and legislators, which directly regulate the insurance business. At the federal level, the RAA is active on insurance regulatory issues and others such as environmental liability, Superfund, and natural disasters.
• Legal agenda -- The RAA serves as a resource for its members and affiliates on analysis of reinsurance statutes and case law nationwide. It represents its members' interests by litigating on behalf of its members and serving as amicus curiae on issues of importance to the reinsurance industry. The RAA publishes articles to further development of reinsurance law in the U.S.
• Information -- The RAA provides aggregate data, including quarterly statistics on industry underwriting results, analysis of annual statement data on the reinsurance market, an underwriting review of premiums and losses, and a biennial study on historical loss development.
• Education -- Seminars on reinsurance for state insurance departments are held around the country each year. Conferences for RAA members and affiliates cover reinsurance legal developments, tax, claims, accounting and environmental issues.
• Electronic Communication -- The RAA has been actively involved in a joint venture with the Brokers & Reinsurance Markets Association, IVANS and European organizations to develop a system for Electronic Data Interchange (EDI) and other electronic commerce technologies to facilitate the exchange of insurance and reinsurance data.
• Publications -- Numerous publications developed by the RAA provide industry data and help explain the complexities of the reinsurance business.