Page 96 - Reinsurance Management IC85

Reinsurance Management

a. the accounted premium is consistent with
estimated premium;

b. the profit commission statement agrees with the
accounted figures;

c. the release of reserves and portfolio movements
are as per treaty terms;

d. the overall result is a profit or loss with due attention
to outstanding loss provisions;

e. the accounts and settlement of balances are
prompt;

f. the treaty document is received or not.

Normally, the results of a treaty are watched over a
period of 3 to 4 years to determine the quality of the
treaty. Where after a review, the treaty shows signs of
deterioration, a cancellation notice should be served
taking into account the current trend in business and
overall relationship.

In reciprocal treaties, any imbalance in premium or
profit may call for adjustment in terms. For an XL
treaty, due regard is paid to check the validity of

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