Question

What is the need for reinsurance?

a.

To minimise the financial impact of death claims on a direct insurer

b.

To increase the profitability of the direct insurer

c.

To reduce the amount of premium paid by the policyholders

d.

To eliminate the need for a direct insurer

Posted under IC22 Life Insurance Underwriting

Answer: (a).To minimise the financial impact of death claims on a direct insurer Explanation:The need for reinsurance is to minimise the financial impact of death claims on a direct insurer.

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