Page 167 - Reinsurance Management IC85

Reinsurance Management

Certain legal guidelines will affect the way claims
will arise. Imagine a situation where courts award
increased amounts in workmen compensation
claims, the increased awards have to be honored
by the insurers or reinsurers.

It is an established convection that the individual
company rating however well is subordinate to
its country’s rating. Hence a well rated company
in a country would be poorly rated if the country’s
sovereign rating is poor.

c) The key areas that a Credit rating agency will
look are:
i) Regulatory framework
ii) Industry analysis
iii) Financial strength of the company
iv) Business and product distribution
v) Management of the company
vi) Flexibility of product pricing
vii) Underwriting
viii) Investments and loan portfolio-liquidity and
loan profile

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