Page 195 - RISK Management IC 86

The Insurance Times

short, can leave investment earnings more exposed
to changes in market interest rates and can not
protect the real value of the fund in simple inflation.

While fixing premiums, the insurance companies
have to take into account changes in market interest
rates riot, price of securities etc.

iii) Exchange Control Regulation - Exchange control
regulations may limit and organisations freedom of
choice in financing of overseas risks. Such
regulations may impose restrictions on:
(i) the remittance of money abroad for current and
capital transactions.
(ii) the retention money is received from abroad in
foreign currencies.
(iii) the inflow from abroad of foreign currency
funds for investment purposes.

So, an international company may not be able to
obtain its share of premium from its overseas
divisions and subsidiaries. Conversely, a company's
own government may restrict remittances abroad
for the reinstatement of losses incurred by overseas
operating units, or such remittances may contravene

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 196

Copyright@ The Insurance Times. 09883398055 / 09883380339