Hi, Can someone help me to understand the following text from the reading: "Disadvantages include: all the issues described in Section 2 (reserving for inwards reinsurance) still apply for non-proportional business (complexity, eg order of operation of contracts, types of cover)" it is talking about the method used to estimate reinsurance recoveries from the perspective of direct insurer by using broad brush , one the disadvantages are all the issues described in section 2 , however, not sure about the "issues described in the section 2..." as the section 2 was talking about the methods used be used to estimate the reserves as inward reinsurance by different type of tails. very confuse about the sentence thank you very much for your time K
Hi Kiki Good spot there is a typo in that sentence and it should refer to Section 1 where the issues with reserving for inwards reinsurance business are discussed. Remember someone's inwards reinsurance business is someone else's outwards reinsurance business, it just depends from which perspective you are looking at things.
