Reinsurance involves insurance companies insuring each other's risks. There are two main types of reinsurance - facultative, which applies to individual risks, and treaty, which applies to a company's entire book of business. Reinsurance can be proportional, where the reinsurer takes a share of each policy, or non-proportional, where the reinsurer covers losses over a certain amount. The reinsurance market in India is dominated by GIC, the sole domestic reinsurer, which reinsures a portion of policies with international reinsurers. Some challenges for reinsurers in the Indian market include higher premium rates and a lack of desirable quotes from Indian reinsurers for small deals.

4. How Reinsurance Works Transfer Of Risk Risk Takers Middle Persons Insurance Policy Holders Insurance Companies Reinsurance Companies Agents Brokers Reinsurance Intermediaries

15. FINANCIAL RESULTS In Rs. Crores 2008-2009 2007-2008 % Change Net Profit 1407 992.7 41.75 Net Premium 7402.3 6750.8 18.71 Gross Premium 8061.13 7981.9 1.4 Solvency Margin 3.67% 3.36% - Net Incurred Claims 6217.1 4582.95 35.65 Income from Investment 1785.8 - - Investments 21,714 - -

16. CLASS WISE EARNINGS FOR YEAR 2007-2008 Earned Premium: Incurred Claims:

20. The End