Page 259 - Reinsurance Management IC85

Reinsurance Management

Marine and aviation excess of loss treaties,
because of their nature to transact insurance on
the basis of underwriting year use "risk attaching"
method.

Q.5) Reinsurance negotiations can belong and
hard. What are its key considerations ?

Ans: The key considerations prevailing in a RE-insurance
market are -:
A. Market Considerations -:
Ceding Insurer : No reinsurer would wish to
support a ceding insurer who is either inadequately
capitalised, in financial difficulty or known in his
market to be a 'rogue'.

Ceding Insurer's underwriting policy : The
reinsurer must be satisfied that the ceding insurer
is transacting his business in a 'normal' fashion.

Underwriter: When a reinsurer accepts a share
in a proportional treaty he is virtually handing to
the ceding insurer's underwriter his pen and

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