Government reinsurance for agri-insurance considered traditional insurace
it's an optional deficit-financing scheme. Province may finance deficits as they occur versus regularly contributing to a government reinsurance fund
So government reinsurance is only relevant when a province is in deficit?
The premium from reinsurance load goes towards
1. Private reinsurance bought by provincial government ?
2. Private reinsurance bought by federal government ?
3. Reinsurance fund federal government maintains?
4. Something else? combination?
Province may finance deficits as they occur. Is this the optional deficit-financing scheme, or is the deficit-financing scheme a federal scheme? What happens to the premium from reinsurance load if province does this?
Comments
What is being said in that sentence is that government reinsurance can be used instead of traditional reinsurance where government reinsurance is optional.
Reinsurance loading goes towards private reinsurance purchases by the province. This is stated in page 13.
"Province may finance deficits as they occur" simply means that the province can borrow money to finance any deficit rather than getting government reinsurance.
Basically there are three options:
If you are financing the deficit as it occurs, there would probably not be a need for a reinsurance load