Question

Why are markets for All Risks packages with enough capacity limited in number?

a.

All Risks packages are very competitively priced and decrease the premium base.

b.

All Risks packages cover multiple types of exposures on a seamless basis, which can lead to a combination of various exposures.

c.

All Risks packages are more expensive than traditional separate insurances.

d.

All Risks packages are only available through a quota-share or surplus reinsurance.

Answer: (b).All Risks packages cover multiple types of exposures on a seamless basis, which can lead to a combination of various exposures. Explanation:The markets for such covers with enough capacity are limited in number and at times full proportional facultative reinsurance support may not be available because of the volume of business under one policy, which is a combination of various exposures.

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Q. Why are markets for All Risks packages with enough capacity limited in number?

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