摘要：A commutation is an agreement between the cedent and the reinsurer. In exchange for a onetime payout to the cedent, the commutation completely releases the reinsurer from an identified set of reserves that fall under the reinsurance contract. Reinsurers and cedents agree to commute claim obligations for a variety of reasons. Foremost on this list is reinsurer or cedent insolvency. In the case of reinsurer insolvency there is rarely a use for a pricing formula as all of the reinsurer’s cedents will likely get some negotiated fraction of their outstanding obligations from the reinsurer. In other cases, including cedent insolvency, pricing formulas are useful. However, even if the pricing methodology is agreed between cedent and reinsurer, the parameters used in these formulas often vary between the reinsurer and the cedent. In some cases, this will widen the gap of acceptable prices and make it harder for an agreement to be reached. In other cases it will do the opposite.In this paper, I consider a variety of factors that would influence how a cedent and, separately, how the reinsurer would value a commutation. Examples are given to broadly illustrate how these factors could be included in a pricing formula. At the end, there is also a short discussion on more qualitative considerations that may override pricing formulae
