Page 234 - Reinsurance Management IC85

The Insurance Times

conservation of foreign exchange there is a keen
pressure to maximise net retention. While this will be
difficult to achieve, the optimisation of net retentions
can be planned through the possibility of reciprocal
inward reinsurance.

The ultimate objective is to optimise retentions and
build up capacity. A constant appraisal of the
programme is therefore necessary at every
anniversary.

Other reinsurance related objectives are:
i. To broaden the spread of the net portfolio by

obtaining participations in the portfolio of risks of
other insurers /reinsurers
ii. To secure technical assistance in rating, terms and
conditions of cover and processing of claims.
iii. To handle separately a new class of business of
unknown hazards or business which is
much exposed to loss from the general net
account when it is desired to proceed cautiously.

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