Page 88 - Reinsurance Management IC85
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Reinsurance Management
u There is a direct reach to wholesale reinsurance
markets.
u There is flexibility in underwriting and funding.
u Provides greater control over claims.
u Availability of smaller deductibles for operating units.
u Proves an additional negotiating leverage with
underwriters.
u Availability of incentives for loss control.
u The captives adopt their own methods in
order to protect their business exposures.
u They generally retain the smaller losses in their
own account and they reach out for excess of
loss exposure in cases of larger loss exposure.
u In order to spread their portfolio in a better way
they write inward reinsurance business.
u There is a reinsurance pool organized for their
clients.
u There is also a reciprocal and non-reciprocal
reinsurance arrangement.
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