Question

What can cause major fluctuations in claims costs for an insurer?

a.

Inadequate spread of risks

b.

Unexpected weather conditions

c.

Social /economic developments resulting in higher third party / riot / theft / terrorism claims and new technology risks of unproven nature

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:Major fluctuations in claims costs can be caused by inadequate spread of risks, unexpected weather conditions, social/economic developments resulting in higher third party/riot/theft/terrorism claims, and new technology risks of unproven nature.

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