Important Points for IC 22 - Life Insurance Underwriting Exam
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Catastrophe reinsurance is for protecting the insurance companies against catastrophes of large mortality claims coming at a single point of time.
Catastrophe reinsurance generally does not cover mortality risks due to wars or natural disasters like tsunamis, earthquakes, volcanoes etc.
Audit of the underwriting function by the reinsurers is an important activity in the life cycle of an insurance company.
In retrocession, the reinsurance company that transfers the risk to another reinsurer is known as the retrocedent.
An insurance company may send a reinsurance case proposal to multiple reinsurers. The reinsurer who gives the most competitive offer is accepted by the insurance company to reinsure the case. This is known as facultative shopping.
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