Page 206 - Reinsurance Management IC85

The Insurance Times

the following main reasons for wanting to write
inward reinsurance business:
i) to increase net retained premium.

ii) due to several reasons like statutory regulations
or economic depression in various countries of
the world, insurers may wish to go in for
reinsurance business than for direct business to
supplement their growth.

iii) to achieve a lower expense ratio by the
maintenance of the volume of premium income.
This is an extension of the objective at (i) above.
Normally, outward cessions would tend to
reduce the gross direct premium income and
consequently expense ratio on the net premium
would be higher.

iv) To obtain a better and wide spread of business
by writing business from overseas.

v) To counteract the drain of foreign exchange on
account of reinsurance ceded abroad. This

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 204

ight@ The Insurance Times. 09883398055 / 0988338