III IC-81 study guide
III IC-81 · Work through your exam, one topic at a time.
IC-81 is a professional examination subject offered within the Insurance Institute of India's professional examination stream, which leads candidates through Licentiate, Associateship and Fellowship stages and sits alongside the Institute's specialised diploma courses. It is aimed at insurance professionals, underwriters, claims handlers and graduates who want a formally examined, industry-recognised qualification rather than a generic online certificate. The III IC-81 study guide has 6 sections and about 1,876 words.
01Fundamentals and Economics of Reinsurance
IC-81 tests reinsurance as a risk-financing and capacity tool. This domain covers why insurers buy reinsurance, the parties involved, and the basic treaty/facultative and proportional/non-proportional split.
309 words, about 2 min02Legal Framework, Contract Terms and Indian Market Practice
IC-81 tests the legal skeleton of reinsurance: contract formation, good faith, claims conduct clauses and the Indian regulatory order of preference. Reinsurance is a contract of indemnity between sophisticated parties, but it depends on the original policy terms.
317 words, about 2 min03Proportional Reinsurance: Quota Share and Surplus
IC-81 tests the two proportional methods in detail. In proportional reinsurance, premium, losses and expenses are shared by the same percentage because the reinsurer accepts a fixed share of the risk.
324 words, about 2 min04Non-Proportional Reinsurance: Excess of Loss and Stop Loss
IC-81 tests non-proportional covers, where the reinsurer pays only the layer above the cedant's retention. These treaties protect against frequency or severity shocks rather than sharing every risk proportionally.
302 words, about 2 min05Reinsurance Programme Design and Retentions
IC-81 tests how an insurer combines treaties into a coherent programme. Programme design balances capital, risk appetite, volatility, regulatory retention rules and reinsurance cost.
312 words, about 2 min06Reinsurance Accounting, Claims and Monitoring
IC-81 tests the money and claims cycle between cedant and reinsurer. Reinsurance accounts convert treaty shares into premium, commission, loss recoveries and balances, while monitoring tests whether the programme still fits the portfolio.
312 words, about 2 min