Question

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

a.

The anticipated incurred loss ratio to the gross and net accounts in a class

b.

The commission component of the reinsurance ceded

c.

The additional cost of the excess of loss reinsurance cover

d.

The gross experience of a class concerned

Answer: (a).The anticipated incurred loss ratio to the gross and net accounts in a class Explanation:The anticipated incurred loss ratio to the gross and net accounts in a class are very good indices for measuring the effect of the program on retentions.

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

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