Question

Why is a breakdown of the premium by the age and size of the vessels carrying the cargo important?

a.

To determine the overall profitability of the insurer's marine cargo portfolio

b.

To assess the likelihood of a particular vessel being involved in a loss event

c.

To understand the distribution of risk across different vessels in the portfolio

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:A breakdown of the premium by the age and size of the vessels carrying the cargo is important for several reasons. Firstly, it helps to determine the overall profitability of the insurer's marine cargo portfolio. Secondly, it can be used to assess the likelihood of a particular vessel being involved in a loss event, which is important information for reinsurers. Finally, it can help to understand the distribution of risk across different vessels in the portfolio, which is important for both underwriters and reinsurers.

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Q. Why is a breakdown of the premium by the age and size of the vessels carrying the cargo important?
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