Direct of reinsurance
What exactly is direct of reinsurance? Is it similar to just figures being gross of reinsurance?
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What exactly is direct of reinsurance? Is it similar to just figures being gross of reinsurance?
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Yes, "direct of reinsurance" and "gross of reinsurance" are generally used interchangeably to mean the opposite of "net of reinsurance". It means reinsurance recovery or payment is not subtracted from the item.
can you explain why IEE is not distorted by reinsurance?
IEE allocations are performed both direct and net of reinsurance, in their respective parts.
Hi - Going back to the original question, is it safe to say that Direct Premium is the premium GROSS of CEDED reinsurance?
Also I want to extrapolate a little, if we take that definition and these relationships:
i) Gross= Net + Ceded
ii) Gross= Direct & Assumed
Could you please tell me if the following Loss & WP statements are incorrect and why? I get that realistically people may not talk like this but I'm trying to test my understanding.
1) If Gross Loss = Direct & Assumed Loss, then does
Direct & Assumed Loss = Net & Assumed Loss + Ceded & Assumed Loss?
2) If Gross WP = Direct & Assumed WP, then does
Direct & Assumed WP = Net & Assumed WP + Ceded & Assumed WP?
These examples are a bit redundant but I think it's helpful to think of it in terms of premium and loss.
It goes like this:
Gross= Direct + Assumed,
Direct = Net + Ceded.
Your items 1 and 2 are correct, but things like "net and assumed" and "ceded and assumed" are not in common usage.
Okay, thanks! Not sure you answered my first question but I think it can be implied. So Direct Premium = Premium Gross of Ceded Reinsurance?
Yup, that's correct.