hello please this chart which we discuss in class, it has examples also
its difficult to explain, while concept here in typing
you can see video lectures,if you are facing many problems in subject.
I already am a video student and I am unclear about the concept even after watching the video. Kindly help.
ok barun you can see above chart also, it is recently introduced.
In Quota Share treaty, % percentage of premium and claim will be shared with re-insurer, for example if percentage to be ceded / given / re-insured is 40% and now premium collected is 100 crores and claims to be paid are 60 crores in such case, we will give re-insurer 40% of premium that is 40 crores and we will recover 40% of claim that is 40% of 60 crore that is 24 crore
now in stop loss treaty loss (claim) “above” fixed percentage will be shared with re-insurer with negotiated premium for example we collected 100 crore premium and claims are 60 crore. further stop loss treaty says claims above 40% of premium will be recovered . Now if claims are 15 crore no recover will happen, and if claim is of 60 crore then above 40% of premium that means above 40 crore that is 60-40 = 20 crore will be recovered
i hope you got the difference, please comment back if there is any doubt 🙂
Yes got it! Thank you so much for the reply.