Question

What factors influence retention in insurance?

a.

The insurer's assets, capital, and free reserves

b.

The amount of premium paid by the policyholder

c.

The degree of fluctuation in the portfolio of risks

d.

Both a and c

Answer: (d).Both a and c Explanation:The insurer's assets, capital, and free reserves, as well as the degree of fluctuation in the portfolio of risks, influence retention in insurance.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What factors influence retention in insurance?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. The concept of balance in reinsurance refers to:

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

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

Q. The concept of an optimum retention refers to:

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

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

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?

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

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

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

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

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

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

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

Q. What is the purpose of solvency margin regulation?

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

Q. In which circumstances should an insurer leave their retention at existing levels despite the "growth"?

Q. What is the purpose of reinsurers requiring higher retentions during times of bad results?

Q. Why might an insurer consider reinsuring as much as possible during times when the supply of reinsurance exceeds demand?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!