IRIS 10 Gross agents' balances
The source text states that, "With regard to reinsurance companies, agents’ balances represent amounts due from reinsured
companies that, in many cases, are subject to regulation."
Could you please explain this a bit more? This ratio is still from the perspective of the primary insurance company right? What is the source of premium income that they should expect to received from reinsurers?
Comments
This ratio is from the perspective of the filer, be it an insurer or a reinsurer. The statement in quotes explains that "agents' balances" correspond to reinsurance premium due from ceding insurers, in the case of a reinsurer. Primary insurer would not expect to receive premium from its reinsurer.
By "subject to regulation," they must be referring to how agents' balances are reported in detail in the AS Interrogatories. I am not sure why they have singled our reinsurers in making reference to this fact.