HELP! Reinsurance Assignment - 100 mks -
April 26th, 2012
I had got this assignment on reinsurance.
Any help / solutions / guideline would be highly appreciated.
Thanks & warm regards,
Trident Insurance Co. approaches you as their broker for arranging reinsurance protection for their fire class of business for the year 1st April 2012 to 31st March 2013. Trident Insurance is in the direct insurance business since past two years.
Their Net Retention per risk is Rs. 10,00,000
They are now looking to purchase a proportional reinsurance treaty capacity of Rs. 50,00,000 either on a quota share basis or on a surplus basis. Estimated Premium Income(EPI) to the proposed treaty for 2012/13: Rs. 8,00,000.
As their broker advice them on the best treaty option and also prepare a slip accordingly for placement of the treaty. Besides the figures given above you may assume other percentages & figures wherever necessary when preparing the placing slip.
Trident Insurance Co., also wishes to protect their above net retention of Rs. 10,00,000 by a suitable non –proportional (i.e excess of loss) treaty. Please advice Trident Insurance a suitable excess of loss treaty structure and also prepare a slip for placement of the non-proportional treaty based on your advice given to Trident Insurance. You may assume figures wherever required.