Question

What was the cause of the growing importance of reinsurance companies?

a.

Increase in the number of insurance companies following extraordinary economic development

b.

Evolution that started with the industrial revolution

c.

Increase in the value at risk and the concentration of values

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:The cause of this phenomenon must be found in an evolution which started with the industrial revolution and accelerated at a quicker pace. On the one hand, the value at risk increased and on the other, these values became more concentrated. The increase in the number of insurance companies following extraordinary economic development is not the only explanation for the growing importance of reinsurance companies.

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