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What the purpose of the direct insurance company in writing reinsurance business by reciprocity agreements ?

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Question added by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company
Date Posted: 2019/09/28
Mamoun elbaghir abdalla mhamad Eltayeb
by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

The purpose of an insurer to write reinsurance business by reciprocity agreements as hereunder :-

1/ To extend their activites .

2/ To boost their premium income .

3/ To enhance their profit .

4/ To enhance market potential .

5/ To achieve more consistent claims ratio through greater diversification and more balance risk profile .

6/ To reduce outflow of foreign currency .

Thanking you.

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