Page 77 - Reinsurance Management IC85
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The Insurance Times
achieve :-
a. Maintenance of the volume of premium income
which would otherwise be reduced by outward
cessions, thereby achieving a lower ratio of
expenses to premiums.
b. Spread of business by exchange of business with
overseas companies.
Factors to be taken into account are:
i. Careful selection of companies for exchange with
due regard to management, financial standing, type
and geographical spread of business, market
practices etc.
ii. The treaties proposed to be exchanged must be
well balanced and relatively stable,
iii. The treaty and its terms should be matched
regarding type, commissions, reserve provisions
etc.
iv. The arrangement should justify the administrative
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