Question

How can a well-planned reinsurance programme ensure long term profitability?

a.

By increasing the insurer's ability to compete for business

b.

By controlling the insurer's expense ratio

c.

By complying with solvency norms

d.

By stabilizing the insurer's profitability

Answer: (d).By stabilizing the insurer's profitability Explanation:A well-planned reinsurance programme can help stabilize the insurer's profitability.

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Q. How can a well-planned reinsurance programme ensure long term profitability?

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