Question

When did the idea of reinsurance first emerge?

a.

In the same period as the emergence of insurance

b.

In the early 19th century

c.

In the 16th century

d.

In the late 18th century

Posted under IC85 Reinsurance Management

Answer: (a).In the same period as the emergence of insurance Explanation:The idea of reinsurance is rooted in the same human instinct that brought insurance into being, i.e. the desire that the loss of one shall be shared by many. In the early days of insurance, insurers only accepted risks that they could handle on their own, but eventually, the concept of reinsurance emerged as a way to spread risk further.

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