Question

Why do reinsurers insist on full underwriting data in respect of the large risks?

a.

To determine the premium amount

b.

To make their own assessment of PML

c.

To modify the reinsurance cessions

d.

None of the above

Posted under IC85 Reinsurance Management

Answer: (b).To make their own assessment of PML Explanation:In respect of the large risks, reinsurers insist on full underwriting data (including Risk Survey Reports) together with sums insured so that they can make their own assessment of PML before accepting specific reinsurance.

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Q. Why do reinsurers insist on full underwriting data in respect of the large risks?
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