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to reinsurance coverage that provided by reinsurers.
By reciprocity agreements in which the insurance company exchange business with reinsurers and agree that reinsurers cedes some of his own business to direct insurer in return to direct insurance business ( reinsurance cessions ).
This will enables the direct insurance company to receiving inward insurance premium from reinsurers who paying them outward premium , therefore insurance company may offsetting the outward insurance premium by inward insurance premium in it's quarter or half year accounts. Hence reducing the amounts transferred to reinsureres consequently outflow of foreign currency abroad.
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