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

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

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

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Q. What is the purpose of "solvency margin" regulation?

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Q. What happens if an insurer invests in stock market investments?

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Q. What is the purpose of using stock market investments to leverage capital gain?

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Q. If management sets high retention limit , then ____________

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Q. What is retention in insurance?

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Q. What is the role of an actuary in managing retention?

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Q. What are the two types of retention that need to be managed?

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