Question

What happens if an insurer invests in stock market investments?

a.

The cost of administration increases and exposure to capital loss increases

b.

The insurer earns a higher return on their investment portfolio

c.

The insurer is able to reinsure at terms which are so advantageous to them

d.

The insurer's retention effectively falls back

Posted under IC85 Reinsurance Management

Answer: (a).The cost of administration increases and exposure to capital loss increases Explanation:Investment in the stock market increases the cost of administration and exposure to capital loss.

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