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Reinsurance Management
Insurer has to disclose Insurer has to submit
full details of the risk that bordereaux at the end of
is underwritten. This could quarter about the risks that
be a problem when are ceded to the treaty.
reinsurer is also seen as a
competitor.
No commission paid. Insurer receives
commissions for the risks ceded.
No profit commission Insurer receives profit
payable. commission.
By prudent underwriting the Reinsurer stand and falls
reinsurer can minimize with the underlying treaty.
losses.
Q7. a) What is sovereign rating?
b) Is sovereign rating subordinate to
individual company's rating? State
reasons.
c) Elaborate the key areas that a credit
rating agency will look into?
Ans: a) Credit rating goes beyond individual companies and
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