A provision in a reinsurance agreement that allows the Reinsurer access to the Ceding Company’s books, records, and other reinsurance-related documents and information. This includes related accounting, underwriting, and claims information for the purpose of obtaining information about the reinsurance agreement or its subject matter from the Reinsurer.
Tag: REINSURANCE
Accident Year Experience
Measures premiums and losses relating to accidents that occurred during a twelve-month period. Earned premiums and ultimate losses from loss events occurring within the same twelve-month accounting period are used to calculate underwriting results, regardless of when the losses are actually reported, booked, or paid.
See also Calendar Year Experience and Policy Year Experience.
Acquisition Costs
All expenses directly related to acquiring insurance or reinsurance accounts; i.e., commissions paid to agents, brokerage fees paid to brokers, premium taxes and expenses associated with marketing, underwriting, contract issuance and premium collection.****Insurer’s/Reinsurer’s cost of securing business including commission to Agents and brokers and other marketing expenses. It also can be accounting charge for placing a new Policy as on Insurer’s books.
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The expense undertaken to acquire new business. The concept applies to both agents and companies. The largest portion of an insurer’s acquisition cost is agent’s or sales representative’s commission or bonus.
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Expenses incurred by an insurer in obtaining new business and issuing policies. Commission to intermediaries accounts for the largest portion of acquisition costs.