Q. What is the purpose of reinsurance?

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Q. What is the importance of addressing the underlying problem of inadequate rates of direct business?

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Q. The primary objective of reinsurance is that it should reduce the insurer’s probability of ‘ruin’ at a price acceptable to it . In what context is the word ‘ruin’ used by an actuary?

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Q. What is the aim of Gross to Net evaluations?

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Q. In the context of commission earned on ceded business, what decision has to be made?

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Q. What is the importance of the gross experience of a class concerned?

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Q. What is a good index for measuring the effect of the program on retentions?

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Q. What is the critical component in determining a large proportion of the balance being generated?

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Q. What factors determine the insurer's capacity to pursue a policy actively?

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Q. How does a catastrophe affect the net retained account?

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Q. What is the relevance of paid-up capital & free reserves in reinsurance program design?

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Q. Why is risk-based capital important in reinsurance program design?

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Q. What is the relevance of the size and structure of the portfolio in reinsurance program design?

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Q. Why is the frequency and size of losses important in reinsurance program design?

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Q. What is the relevance of management, underwriting, and claims handling capabilities in reinsurance program design?

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Q. Why is investment and liquidity policy important in reinsurance program design?

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Q. What is the relevance of reinsurance market conditions in reinsurance program design?

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Q. The anticipated incurred loss ratio to the gross and net accounts in a class are very good indices for measuring the effect of the programme on retentions. Which of the following is true in the context of gross direct account?

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Q. What is the purpose of ceding arrangements in reinsurance?

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Q. How should reinsurance cessations be evaluated for outward arrangements?What factors should be considered when determining the economics of each ceding arrangement?

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