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Reinsurance Management

companies for the purpose. First, the business
within the agreements is pooled and then
retroceded either in an agreed proportion or in
proportion to volume of business ceded. The
pool may also retain to its own account a fixed
amount of all business received by the pool.

ii. A member company accepting a risk falling
within the pool arrangement may pass the entire
risk to the pool or retain a portion and pass the
surplus or retain a quota share and then cede
the surplus.

iii. The business received by the pool may be
retroceded on either quota share basis or quota
share of the surplus after the pool retention.

iv. When the maximum group retention of the entire
pool is exceeded for a risk, additional reinsurance
by the pool may be done on quota share, surplus
or quota-cum-surplus basis with reinsurers.

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