Question

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

a.

In highly competitive markets

b.

When the supply of reinsurance exceeds demand

c.

When the retention is falling back due to inflation

d.

When the insurer has earned higher return from stock market investments

Posted under IC85 Reinsurance Management

Answer: (a).In highly competitive markets Explanation:In highly competitive markets or markets where there is discernible competitiveness, an insurer should leave their retention at existing levels despite the "growth".

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