Question

What is the function of reinsurance in providing increased capacity?

a.

To provide insurers with the extra capacity required to accept complex risks

b.

To enable insurers to handle large loss events

c.

To supplement protection to limit losses arising from a single event

d.

both a and b

Posted under IC85 Reinsurance Management

Answer: (d).both a and b Explanation:The function of reinsurance in providing increased capacity is to provide insurers with the extra capacity required to accept complex risks and to enable them to handle large loss events.

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Q. What is the function of reinsurance in providing increased capacity?
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