Q. What is the impact of setting low retention limits?

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Q. What is the basis for implementing reinsurances?

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Q. What factors influence retention in insurance?

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Q. What is the aim of determining the degree of acceptable fluctuation in a portfolio?

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Q. The concept of balance in reinsurance refers to:

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Q. The reinsurance manager must establish his retention and reinsurance program to:

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Q. Retention is assessed in the light of the need to:

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Q. The concept of an optimum retention refers to:

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Q. What is the purpose of setting cash loss limit for proportional reinsurance arrangements?

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Q. What is the primary goal of every insurer with respect to their capital?

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Q. Which type of investment is likely to yield higher interest but may result in illiquid asset or loss of higher interest due to premature closure?

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Q. Why is investment in liquid assets important for insurers?

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Q. Why may it not be desirable to sell stocks and shares to pay for a claim?

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Q. What is the importance of the management weighing the alternatives to arrive at the retention which represents the best solution for the insurer?

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Q. What is the impact of a highly competitive market on an insurer's profitability?

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Q. In what circumstances should an insurer increase their retention to preserve the acceptable degree of fluctuation of results?

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Q. What is the impact of a bad reinsurance market on an insurer's retention?

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Q. When may an insurer consider reinsuring as much as possible?

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Q. What is the purpose of solvency margin regulation?

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Q. What happens if an insurer fails to maintain an acceptable degree of fluctuation of results?

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