Question

How does an insurer achieve the desired level of reinsurance protection in treaty reinsurance?

a.

By entering into a single reinsurance treaty to cover certain loss exposures.

b.

By purchasing retrocession for each loss exposure.

c.

By purchasing numerous treaties until the desired level of reinsurance protection is achieved.

d.

By declining certain risks that fall within the scope of the treaty.

Posted under IC85 Reinsurance Management

Answer: (c).By purchasing numerous treaties until the desired level of reinsurance protection is achieved. Explanation:An insurer achieves the desired level of reinsurance protection in treaty reinsurance by purchasing numerous treaties until the desired level of reinsurance protection is achieved.

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Q. How does an insurer achieve the desired level of reinsurance protection in treaty reinsurance?
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