Page 101 - Reinsurance Management IC85

The Insurance Times

and accounted for by the reinsurer may match,
unless outstanding claims provisions made in the
books of the reinsurer are substantially different
from the actual outstanding claims.

In respect of non-proportional treaties, the main problem
is in the long duration of claim reporting with the
eventual cost of claims not being known to reinsurers
for many years. Hence provision is made on a funded
basis.

Each year the fund is examined to ensure its adequacy
with regard to outstanding claims. Any deficit is
supplemented by transfer from revenue each year and
any surplus transferred to revenue reserves normally
after watching a three year experience.

Q. What are the registers essential in an office
accepting inward Reinsurance Business?

Ans: For an efficient administration in the matter of
acceptance of Inward Reinsurance Business following
registers are essential

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