Page 196 - Reinsurance Management IC85

The Insurance Times

unknown hazards or business which is much
exposed to loss from the general net account
when it is desired to proceed cautiously.

b. Points to be considered for placement of risk
through intermediaries:-

The word 'intermediary’ extends the typical broker in
his function to a position of dual responsibility. In the
first instance the intermediary understands and consults
with a proposer to properly represent him to the
reinsurer/s. Once the slip is signed down and a cover
note formalized the intermediary takes over handling
of documentation for the reinsurer. He gets his
brokerage from the reinsurer for his services to both
the insurer and his reinsurer.

Why an intermediary? Internet and mobile
communication have made it possible to establish
connection with insurers in distant parts of the world
without the aid of intermediaries. It may be found
useful to utilize them to deal with markets which are
not visited regularly by the insurer's own executives

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