Page 38 - Reinsurance Management IC85
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Reinsurance Management
may seek an excess of loss protection for
its entire inward account consisting of both
proportional and non-proportional acceptances,
with the objective of protecting their inward
account against world-wide accumulations in the
assessment of potential risk.
Q. Discuss the considerations which the
company should keep in mind while
finalizing its inward insurance program.
Ans: Some considerations the company should keep in
mind while finalizing its inward insurance program
for any year are as follows:
Treaty or facultative: reinsurance involves more
administrative work as each offer will have to be
scrutinized.
Treaty is less expensive but it requires a thorough
knowledge of the market and treaty clauses.
Territorial scope: If the company wants a greater
geographical spread then it should underwrite foreign
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