Page 197 - Reinsurance Management IC85

Reinsurance Management

or where he does not operate directly or where
the reinsurers' representative does not visit his
office regularly.

However in practice the intermediary proves his
value by providing a regular flow of intelligence about
world markets. He also keeps a watch over the
financial position of the reinsurers and alerts for
downgrades in their financial standing. He is able to
handle tough negotiations without embarrassment and
exchange of argumentative messages.

Thus an intermediary lends himself to the sensitive
handling of reciprocal reinsurance negotiations and
placement for reinsurance protection. It can also be
said that, like a professional reinsurer, he is able to
provide depth of service on more difficult
reinsurance business largely because of the brokerage
earned on easier reinsurance transactions..

The slip is prepared in consultation with the broker
as he is the intermediary who goes around to

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