Page 205 - Reinsurance Management IC85

Reinsurance Management

In reading through the lesson on direct placement
and placement through intermediaries as above one
will note that the two perspectives are vastly
different. Emphasis is laid upon judicious use of
the intermediary. The final objective is the
reinsurance programme and the success of its
operation. An insurer seeks this success on his
own and with external help. It works that way.

Q7. Elaborate the reasons why an insurance
company would write inward reinsurance
business.

Ans: The reasons for an insurance company to write
an inward reinsurance business are enumerated
as below:-
Inward reinsurance is written by both professional
reinsurers and direct writing companies. Practically,
most insurers write inward reinsurance business
besides the reinsurers. Whilst a professional reinsurer
is a specialist insurer writing only reinsurance business,
direct writing insurance companies may be guided by

Sashi Publications - www.sashipublications.com 203

ight@ The Insurance Times. 09883398055 / 0988338