Page 94 - Reinsurance Management IC85

Reinsurance Management

reinsurers well in time for inclusion in their annual
accounts. The reinsurers adopt some of the following
methods for a reasonably accurate estimate of the
same :-

a. Estimated losses as advised by the ceding
company as at the date of closing. If this is
not available, estimates at the latest available
date plus large losses intimated subsequently,
but not paid.

b. Where there is a provision for a portfolio entry
in the treaty, the same amount to be provided
as estimate for outstanding claims.

c. Where the ceding company has provided
renewal statistics, take outstanding losses from
it. Otherwise, check incurred claims ratio over
a period and base on the same estimate,
incurred claims and for outstanding claims after
deducting accounted paid claims.

d. Where only accounted figures for the current

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