Page 270 - Reinsurance Management IC85

The Insurance Times

iii. Legal imposition - Whatever an insurer's
perception of his prospects there are many
countries, which

iv. Lay down rules and regulations intended to
guarantee that an insurer will always be able
to meet his liabilities. India is one of them.
Therefore, working within the legal
framework, an insurer may well have to
reinsure more and retain less anyway. In
addition to the regulation on solvency margin
the law may determine that some assets are
not allowable for calculation of solvency
margin.

v. Other regulations - In some countries, the lack
of hard currency to pay for reinsurance
sometimes compels a insurer to adjust its retention
upwards and with need for government to act as
reinsurer of last resort.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 268

ight@ The Insurance Times. 09883398055 / 0988338