Question

‘If the risk is not a very good risk the insurer may keep less and the amount to be reinsured will therefore increase in case of treaties without a line limitation.’ This is true for which of the following categories of reinsurance?

Life reassurance

Marine reinsurance

Aviation reinsurance

Property reinsurance

Posted under IC85 Reinsurance Management

Answer: (d).Property reinsurance Explanation:This statement refers to the concept of "surplus reinsurance" in property insurance, where the insurer retains a certain amount of risk and cedes the excess risk to the reinsurer. If the risk is considered less desirable, the insurer will retain less of the risk and cede more to the reinsurer. This is because the reinsurer will charge a higher premium for a riskier policy, and the insurer will want to limit their exposure to potential losses. This concept does not typically apply to life, marine, or aviation reinsurance.

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Q. ‘If the risk is not a very good risk the insurer may keep less and the amount to be reinsured will therefore increase in case of treaties without a line limitation.’ This is true...

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