Page 45 - Reinsurance Management IC85

The Insurance Times

Q. Expand and explain the following with
reference to XL cover.
a. GNPI
b. NPI
c. GNEPI
d. Accounted for premium income

Ans: a. GNPI
Gross Net Premium Income of the portfolio is
computed after deducting die following from the gross
premium:-
i. Returns and cancellations

ii. Premiums paid to specific reinsurances which go
to the benefit of XL cover,

iii. Premiums relating to that part of the portfolio
which is not protected by XL cover.

b. NPI:
Net Premium Income refers to gross premium
less commissions, brokerage and taxes. It is also
known as ONPI (Original Net Premium Income).

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