Question

Why is the acquisition and underwriting results of a reinsurance insurer directly dependent on its quality?

a.

Because reinsurance operations are easily controllable by the supervisory authority

b.

Because tax can be levied on several components of reinsurance operations

c.

Because the reinsurer must work on as wide a basis as possible

d.

Because several reinsurance companies have suffered setbacks through deficient organization

Posted under IC85 Reinsurance Management

Answer: (d).Because several reinsurance companies have suffered setbacks through deficient organization Explanation:The internal and external organization of a reinsurance insurer is of prime importance because the acquisition and underwriting results are directly dependent on its quality. Several reinsurance companies have suffered considerable setbacks through deficient organization as a result of bad planning, incomplete control, or lack of specialist.

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Q. Why is the acquisition and underwriting results of a reinsurance insurer directly dependent on its quality?
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