Page 137 - Reinsurance Management IC85

Reinsurance Management

ix) Extent reinsurance in place for each class

x) Ratio of net premiums written to policy
holder surplus

Q5. Outline the functions of Intermediaries in
global Reinsurance Market.

Ans: The word intermediary extends the typical broker in
his function to a position of dual responsibility. The
broker acting on behalf of insurer represents the
insurer’s risk to the reinsurer. Once the slip has been
signed and cover note produced the broker takes
over the documentation for the reinsurer. The
intermediary receives commission for his work from
the reinsurer.

Broker’s leverage in the reinsurance market edges
him over insurer directly approaching the reinsurer.
Intermediary follows the reinsurance market closely,
which is his primary job, and watches over the
financial position of the reinsurers and alerts for
downgrading in their credit ratings.

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