Question

What issue did cargo reinsurers face in regards to war risk cover in the last decade?

a.

They found that war risk cover was not important and did not need a separate rate

b.

They were unsure how to define one event in respect of war risk losses

c.

They found it difficult to establish and control accumulations for marine cargo reinsurance

d.

They became aware of substantial accumulations under war risk cover

Posted under IC85 Reinsurance Management

Answer: (d).They became aware of substantial accumulations under war risk cover Explanation:During the last decade cargo reinsurers became aware of the very substantial accumulations which can occur under war risk cover even in respect of localised hostilities, leading them to ask for a separate rate for the war risk premium under the excess of loss cover.

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Q. What issue did cargo reinsurers face in regards to war risk cover in the last decade?
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