Question

What is the role of an intermediary in the reinsurance placement process?

a.

To represent the insurer to the reinsurer/s and handle documentation

b.

To provide intelligence about world markets

c.

To handle tough negotiations and exchange of argumentative messages

d.

All of the above

Answer: (d).All of the above Explanation:The intermediary plays a dual role in the reinsurance placement process. Initially, they understand and consult with the proposer to represent them to the reinsurer/s. Once the slip is signed and a cover note is formalized, the intermediary takes over the handling of documentation for the reinsurer. Additionally, the intermediary provides a regular flow of intelligence about world markets, keeps an eye on the financial position of reinsurers, and is capable of handling tough negotiations and exchanges of argumentative messages.

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Q. What is the role of an intermediary in the reinsurance placement process?

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