Page 283 - Reinsurance Management IC85

Reinsurance Management

Such transformation can occur through the
policy itself, or through the use of a
transformer reinsure, a method important in
credit risk markets, hard asset value coverage
and weather markets.

d) Uberrima Fides
(Utmost good faith). Similar to insurance contract
where policy holder should disclose all material
facts with utmost good faith to insurance
company, a reinsured should disclose all material
facts regarding a risk to reinsurer.

The cedant must provide the reinsurer with
detailed information regarding the portfolio it is
trying to reinsure. This trust is extended to the
underwriting of risks, settlement of claims and
determination of retentions and cessions.

Q.4. a) Briefly explain primary objectives of
Reinsurance Programme.

b) What are the follow up and evaluation

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