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Jim, explain more for our audience what reinsurance is.
OK. Well, we use it a little differently than what the standard definition of reinsurance
is. Let's take life insurance. You've got a company, a small life insurance company,
and they insure an individual for $1,000,000, and the premium is $10,000. Well, obviously,
$10,000 is not enough to pay a $1,000,000 risk. So what that small company will do is
reinsure out enough risk so that if they have a claim, it doesn't hurt the reinsurance company.
So they probably reinsure out $900,000 and keep $100,000. And a big reinsurance company
would get the $900,000. That's what we do, except we've turned it around. We go from
the big company to the little company. We've got a big company that's an insurance company,
or it's sometimes called a direct writer. The direct writer writes the insurance, and
then it reinsures the business into a small company. So the question then becomes, how
can you cede business, and that's what it's called when you put the business out, it's
ceding business, how can a small company afford to assume the risk that a big company's not
keeping? And it's because of the nature of the business. In our business, all the products
are single premium policies. I.E., you get the premium up front. And then, you pay the
claims over the life of the policy. You have a 5 year car loan, you're going to be paying
the claims over 5 years. But you've got the money up front. So you really have enough
money day one in order for the claims to be paid. And that's what the Turks and Caicos
Islands has understood from 25 years ago. And they know that this product, or the products
in the F&I Department, or the Finance and Insurance Department, generate enough premiums
to pay the claims from day one.