You are the recently appointed CEO of a medium sized insurance company writing personal lines business exclusively
Question:
You are the recently appointed CEO of a medium sized insurance company writing personal lines business exclusively for their net account due to the small limits offered. One of the goals set for you is to grow and diversify the company’s income.
In discussions with your reinsurance manager, you consider looking at commercial lines business along with specialist classes of business. However, you are concerned about the implications of this growth path and the effect on the current business operations as well as the challenges to be borne going forward.
1 Compare the decision factors that you will take into consideration to choose the correct reinsurance programme between a proportional or non-proportional programme.
2 Suggest if there are any drawbacks to a single risk excess of loss programme.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill