Page 114 - Reinsurance Management IC85

The Insurance Times

Ans: I.R.D.A Regulations containing the objectives of a
Reinsurance programme are :-
u Maximization of retention within the company and
development of adequate capacity.

u Securing the best possible protection for the
reinsurance costs incurred.

u Simplification of administration of business.

u Outward placement abroad only with those
reinsurers who had continuously enjoyed BBB
(Standard and Poor) or equal rating of any
international rating agency for the past five years.

u Formulation of well-defined underwriting policy
duly filed with IRDA stating the classes of
business carried on, geographical scope,
underwriting limits and profit objectives.

Q. Why reinsurance of life insurance is not
popular ? Find out reasons and explain the

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