Page 130 - Reinsurance Management IC85

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iv) Is the arrangement a proportional or non-
proportional arrangement? The business may
also have mix of both operating simultaneously.
In that case what percentages of both are
required?

With proportional treaties there is risk for
huge loss coming from business written as
they invariably provide cover for catastrophic
losses, as number of policies will be
triggered at the same time. In case of non-
proportional treaties the liability is capped at
a maximum level.

v) Territorial scope of the underlying risks written?
Better spread of risks can be obtained from risks
written from other countries, but with it comes
different problems like currency fluctuations,
political risks etc.

vi) Classes of business written. An underwriter should
accept inward business in classes where results

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