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The Insurance Times
they may still agree to waive bordereaux.
When the Auto/Fac cover contains only peak
risks, it may be worthwhile providing
bordereaux if a large reinsurance capacity be
required.
Q.6) "Fixing of retention for different risk
forms an important part of reinsurance"
- Elucidate enumerating various factors
influencing Retention.
Ans: Factors Influencing Retention -:
The Insurer's Assets, Capital, Free Reserves
The owner's assets are inevitably low at the time of
commencement of business and builds up over time.
On the one hand, the owners will not want to lose
the money they have invested. On the other, they
will expect an adequate return on capital in the form
of dividends to themselves and other shareholders.
The Portfolio of Risks
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