Page 202 - Reinsurance Management IC85

The Insurance Times

intermediaries possess is very useful in placing
such surpluses. Further, it pays not to drive a very
hard bargain in placing such covers so that the
goodwill of the reinsurers is retained.

Arranging working covers on a per event basis and
dovetailing them into the catastrophe cover are all
measures aimed at securing complete protection at
an economic cost. Skillful broking sometimes enables
the ceding insurer to get rates which are derived solely
from the claims recovered and hence the catastrophe
cover is obtained almost free.

The competition among intermediaries for business may
get reflected in offer of lower rates for an insurer 's
cover. The quote would be from a different reinsurance
source. In examining such offers one has to exercise
great caution.

On closer examination one may discover that the lead
has been obtained from a reinsurer not so well informed
about the ceding insurer's business and may even be
based on incomplete information. Again, the quotation

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 200

ight@ The Insurance Times. 09883398055 / 0988338