Page 199 - Reinsurance Management IC85

Reinsurance Management

conditionally. Negotiating out the conditionalities
on the slip is another key issue for the
intermediary. Eventually when the slip is shown
around to the markets the written line, being
participation indicated by underwriters, is totalled.
If it exceeds 100 % of the intermediary share of
risk placement then it is signed down pro-rata.

As per market practice the intermediary issues a
cover note summarizing the terms of placement,
premium and the participating underwriters with their
shares set opposite their names.

The intermediary takes responsibility to collect
premium and distribute to the underwriters. He also
takes responsibility to handle claims recoveries for the
insurer. He issues policy documentation with its
wordings following the issue of the cover note.

Considerable thought and effort go into the planning
and establishment of reciprocal reinsurance trading.
A good spread for the net account is obtained only

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