Page 262 - Reinsurance Management IC85

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Market Experience : Presently the benchmark
for a country is the 'sovereign rating" of credit
agencies. For instance, Standard & Poor rating
of BBB would rate a country and all its
businesses to be investment grade and
anything at BB+ and below as required credit
watch.

B. Forms of Reinsurance
The forms of reinsurance used to negotiate
protection to a programme are varied. Briefly
these are :
Surplus Treaty : There are fundamental
differences between insurers as to how the surplus
treaty is arranged and operated. Variations exist
in the manner in which it is combine with quota-
share or excess of loss or incorporate a line based
limit.

Quota Share Treaty : This treaty is used mainly
for small accounts where the extra administrative

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