Retention policy compliance requires Board-approved segment-wise risk retention, prevents fronting arrangements, and permits directions requiring policy justification. Every IIO must adopt a Board-approved, segment-wise retention policy that maximises retention according to financial strength and risk quality and ... Summary
Every IIO must adopt a Board-approved, segment-wise retention policy that maximises retention according to financial strength and risk quality and prevents re-insurance arrangements from operating as fronting. IIOs must comply with minimum retention requirements specified by the Authority. The Authority may require justification of a retention policy and issue necessary directions concerning it.
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