Page 217 - Reinsurance Management IC85
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Reinsurance Management
Laborious process to Easy to place the risk
as
discuss and finalise the risk is automatically
a contract. Lot of time ceded.
involved and the insurer
may loose the business
in this delay.
Insurer has to disclose Insurer has to submit
full details of the risk bordereaux at the end of
that is underwritten. quarter about the risks
This could be a problem that are ceded to the
when reinsurer is also treaty.
seen as a competitor.
No commission paid Insurer receives
commissions for the
risks ceded
No profit commission Insurer receives profit
payable commission
By prudent under- Reinsurer stand and falls
writing the reinsurer with the underlying
can minimize losses treaty
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