Question

What was the solution to the increased rates and reinstatement terms for war risk cover?

a.

Switching over to quota share reinsurance on war risk only

b.

Cancelling all war risk cover policies

c.

Increasing rates and reinstatement terms even more

d.

Adding war risk cover as a mere extension of the basic cover

Posted under IC85 Reinsurance Management

Answer: (a).Switching over to quota share reinsurance on war risk only Explanation:The increased rates and reinstatement terms were found uneconomic in most cases and it was found more advantageous to switch over to quota share reinsurance on war risk only.

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Q. What was the solution to the increased rates and reinstatement terms for war risk cover?
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