Page 27 - Reinsurance Management IC85

The Insurance Times

iii. The results of the treaty reinsurers may
widely vary from the net retained account
of the ceding company.

Q. What are the common types of pools and how
are they administrated?

A pool is a form of reinsurance arrangement between
member companies by which one or more classes of
business is pooled and then retroceded to members
in an agreed proportion of volume of business ceded.
This arrangement is in effect a system of quota and
/ or reinsurance among participating members of the
pool.

The common types of pools are:
a. Pools for special classes of risks - e.g., for nuclear

risks, petrochemical risks, product liability, etc.
b. Government Reinsurance Pools.

Administration of Pools:
i. A pool is administrated by a member company or

by an organisation created by member

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