May occur where a parent company controls other insurance companies within its group. Group underwriting is an alternative to interchange of business within the group. Each acceptance of business is reported to a central control where a group retention is observed in accordance with a scale of group limits reflecting the group’s commitments. Reinsurance may be arranged by the subsidiary or the parent. Centralised underwriting enables the group to maximise its underwriting capacity.
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The centralization of underwriting within a group of insurance companies, thus maximizing the group’s underwriting capacity.