Page 231 - Reinsurance Management IC85

Reinsurance Management

Typically reinstatement provisions are relevant for
catastrophe excess of loss covers. However this
facility is extended to Risk XL cover on free of cost
basis for the first or the first two reinstatements with
any subsequent reinstatement bearing a stiff additional
premium.The additional premium may follow the treaty
premium and be prorated for the amount reinstated.
Any basis would be as negotiated and as agreed with
the treaty reinsurer.

In the case of excess of loss treaty based on "Burning
Cost' the GNPI for purpose of reinstatement would
need to be agreed at the time of inception.

Q5. What are the objectives and considerations
while designing a reinsurance programme.

Ans: The objectives of a reinsurance programme can be
stated as follows -:
Primary Objectives :
An effective reinsurance program should primarily
achieve the following objectives:

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