Page 78 - Reinsurance Management IC85
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Reinsurance Management
costs involved in servicing the accounts and
should not be merely for spread of large
number of small shares.
v. Liabilities on business accepted should be
within one's net acceptance limits.
vi. The premium size of each exchange should be at
a level to ensure that there is no excessive or
unbalanced involvement in any one area.
A treaty exchange will aim to achieve premium parity
and profit parity by suitable adjustments of commissions,
additional cessions etc., and normally based on long-
term review and experience.
Q. The analysis of business by source is
particularly relevant in the case of a
reinsurer. What are the usual sources?
Discuss the advantages and disadvantages of
each source.
Ans: The usual sources from which a reinsurer may acquire
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