Page 203 - Reinsurance Management IC85

Reinsurance Management

may have been developed on an "oblige" basis so
as to effect an entry for the intermediary in the
insurer's account. Such rates are very unstable and,
in switching reinsurance markets one loses the
goodwill and reserves built up with an existing set
of reinsurers.

It is important to keep the structure of the reinsurance
arrangements and terms under constant review. This
requires a great deal of collation and analysis of data
on the nature of the insurer's portfolio, claims
experience and rate levels. Without such an exercise
one may not get the best out of the reinsurance
programme. Good reinsurance arrangements provide
a great deal of confidence to the reinsurers and enable
the insurer provide efficient and speedy service to
his own clients.

The advantages and disadvantages of direct
placements and dealing through intermediaries is not
a comparison of merits of the one over the other.
Both have their roles to perform and responsibilities

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ight@ The Insurance Times. 09883398055 / 0988338