Page 201 - Reinsurance Management IC85

Reinsurance Management

While reinsurers on the first surplus and often
on the second surplus treaties rarely spend time
investigating the original business rate levels,
reinsurers on the higher surpluses and on the
facultative reinsurance examine the adequacy of rate
levels. Especially, when considering a facultative
offer, reinsurers ask for detailed underwriting data
and particulars of rates, etc.

Thus, when placing the top surpluses on the large
risks, the reinsurance capacity available will
depend much on the underwriting data proving
satisfactory. In some of the underdeveloped
markets, the reinsurers or intermediaries even
inspect the risks themselves and advise on risk
improvements, rates, etc.

In the placement of the top surplus, selection of the
reinsurer requires a great deal of care. Not only should
the reinsurer be financially sound but he should also
be known for his reasonableness and promptness. The
expertise and knowledge of markets which the

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