Page 31 - Reinsurance Management IC85

The Insurance Times

reason, such a treaty is also called "working" or
"underwriting" covers. A working cover may also
have an overall "per event" limit.

The main advantage of a Working Excess of Loss
Reinsurance is that a greater proportion of the gross
premium income can be retained by the ceding
company.

b. Per Event Cover:
This is also known as catastrophe cover. It is designed
to protect the ceding company from very large losses
arising out of events such as conflagrations, flood,
cyclone, etc. Where because of one event, many risks
are affected, the Per Event cover provides protection
to the ceding company. It is not an underwriting cover
and comes into effect if two or more risks are
damaged or destroyed as a result of one event. In
other words, when the ceding company is expected to
pay losses in excess of at least one maximum
underwriting retention, the catastrophe cover comes
into effect.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 30

ight@ The Insurance Times. 09883398055 / 0988338