Question

What are the key objectives of an insurer in arranging reinsurance?

a.

Increasing capacity to handle larger risks

b.

Enhancing ability to accept larger lines than his capital allows

c.

Stabilising his operating results from year to year

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:The key objectives of an insurer in arranging reinsurance are to increase capacity to handle larger risks, enhance the ability to accept larger lines than his capital allows, and stabilise operating results from year to year with the reinsurer absorbing larger claims or catastrophe losses.

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Q. What are the key objectives of an insurer in arranging reinsurance?
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