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Reinsurance Management
Q.1 Elaborate :
a) IBNR
b) Ultimate net Loss
c) Retrocessionaire
d) Minimum and Deposit Premium.
Ans: a) IBNR
(Incurred But Not Reported). Most of the
claims are only advised some years after the
date of occurrence. This late reporting may be
due to administrative problems of the insurer
or it may be due to the normal delay in claims
being made on the insurer by claimants.
b) Ultimate net Loss
In reinsurance, the unit of loss to which the
reinsurance applies, as determined by the
reinsurance agreement. In other words, the
gross loss less any recoveries from other
reinsurance which reduce the loss to the treaty
in question. Underlying. The amount of loss
which attaches before the next higher excess
layer of insurance or reinsurance attaches.
Underwriting Year Experience Simplistically,
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