Question

What type of reinsurance support is needed for an All Risks package?

a.

Full facultative reinsurance support

b.

Quota-share or surplus reinsurance support

c.

Excess of loss cover

d.

Either a or c

Answer: (d).Either a or c Explanation:An All Risks package is not the matter of interest for the quota-share and surplus reinsurance, but will be fully driven by facultative reinsurance considerations. The insurer has to select a combination of facultative and excess of loss covers while ensuring that his net retention is not unduly overburdened.

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Q. What type of reinsurance support is needed for an All Risks package?

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