Page 295 - Reinsurance Management IC85

The Insurance Times

will credit the reinsurer with an amount equal
to percentage agreed of the premiums,
without deduction of commission, as
accounted in the four quarterly statements
immediately preceding the commencement
date of reinsurance.

In the event of the ceding insurer exercising such
option the reinsurer will also be credited with
his proportion of 90% of the estimated losses
outstanding as at the date of commencement for
which there insurer will assume liability for
settlement of all losses as outstanding. Should
the actual payments in respect of such
outstanding losses differ materially from the
mount credited to the reinsurer at commencement
the ceding insurer will have the right to effect
appropriate adjustment.

Q.5. "Pools have emerged as a capacity creating
alternatives"- Comment.

Ans. As the market complexities grows the need for
innovative covers and method also grow.
Reinsurance helps to share the loss of insurance

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