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Reinsurance Management

f) Hard market: When the market does not have
enough capacity to underwrite all the risks it is
termed as hard market.

Soft market : When the market has enough
capacity to underwrite all the risks on offer it is
termed as hard market.

Q4. ABC General Insurance Company is about
to be set up in India. Please clarify :-
a) The specific IRDA regulation applicable
regarding Reinsurance.
b) Minimum rating stipulated by IRDA for
a reinsurance company with which
business can be placed.
c) Limit of statutory cessions (%) to GIC
during 2009-2010.
d) What are the criteria for security
evaluation adopted by credit agencies?

Ans: a) (General Insurance - Reinsurance) Regulation
2000

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