Page 30 - Reinsurance Management IC85

Reinsurance Management

d. Reinsurance premium is on the ceding company's
whole portfolio and not on individual cessions,

e. Reinsurance rate/premium is agreed in advance.

f. Reinsurance premium can vary considerably from
year to year based on development of premium
income, loss experience and trends in reinsurance
market.

g. Normally, there is no commission or profit
commission.

Q. Write short notes on:

a. Per Risk Cover:
This is also known as underwriting or working cover
or "workers". In this type, reinsurer will pay any loss
on an individual risk in excess of the ceding company's
loss retention. In this type of Excess of Loss
Reinsurance, it is normal that the ceding company's
retention will be kept low. This results in reinsurer being
likely to pay a number of losses each year. For this

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