Page 79 - Reinsurance Management IC85

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his business are
a. Domestic direct writing companies

b. Foreign direct writing companies
c. Reinsurance companies and Lloyd's

underwriters

d. Brokers
a. Domestic direct writing companies: Here the

attraction is low acquisition cost and easy
manageability. It is free from complications like
fluctuations in foreign exchange. But it lacks the
volume and spread of business which is essential
for a profitable account.

b. Overseas business: Here there is wide
geographical spread. But the cost of maintenance
may be higher. Legal systems and market practices
may vary and cause difficulties.

c. Reinsurance companies and Lloyds
underwriters: There will be an ideal geographical
spread when business comes from reinsurers
operating in different countries.

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