Question

In proportional treaty accounts, who is responsible for preparing the accounts?

a.

Reinsurer

b.

Ceding insurer

c.

Broker

d.

Regulatory bodies

Posted under IC85 Reinsurance Management

Answer: (b).Ceding insurer Explanation:In proportional treaty accounts, the responsibility for preparing the accounts lies with the ceding insurer. The ceding insurer possesses the necessary information regarding premiums, claims paid, reserves released, and retained amounts. As most treaties are "blind" and do not provide individual cession details to the reinsurer, the ceding insurer is responsible for compiling and providing the relevant account information to the reinsurer.

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Q. In proportional treaty accounts, who is responsible for preparing the accounts?
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