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

View solution

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?

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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?

View solution

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

View solution

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

View solution

Q. How should reinsurance cessations be evaluated for outward arrangements?

View solution