Question

What is the correct approach for the evaluation of outward arrangements?

a.

To evaluate each arrangement-wise assessment of reinsurance cessations

b.

To group the risks into their types based on their loss-ratios

c.

To analyze the commissions obtained under each arrangement and the additional infrastructure involved in its administration

d.

All of the above

Answer: (d).All of the above Explanation:For the purpose of the evaluation of outward arrangements, the correct approach is to make an arrangement-wise assessment of reinsurance cessations, evaluate the risks ceded to each arrangement based on their loss-ratios by grouping them into their types, and analyze the commissions obtained under each arrangement and the additional infrastructure involved in its administration. Therefore, the correct approach is all of the above.

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Q. What is the correct approach for the evaluation of outward arrangements?

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