Page 152 - Reinsurance Management IC85

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b) Increasing insurer’s capacity to handle large risks,
which he would not normally bear because of
financial capacity.

Enhancing ability to accept large lines than his
capital can allow. This is even truer when insurer
is entering in to new portfolio and requires
capacity to write large volumes of business.

Even out results or fluctuations in results caused
by large losses.

To improve or maintain solvency. Any large losses
can severely dent the financial strength of the
insurer.

Insurer can aspire to get wide spread of risk with
reinsurance which it would not get from its
domestic market. Reinsurers insuring risks globally
get wide spread of risk.

Insurers entering into new portfolios can take the

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