Q. In which lines of business is reciprocal reinsurance trading widely prevalent?

View solution

Q. In which lines of business is reciprocal reinsurance trading widely prevalent?How does premium reciprocity vary based on profitability in reciprocal reinsurance trading?

View solution

Q. What is a potential danger in accepting a large premium reciprocity from a treaty with low average profitability?

View solution

Q. What are the advantages of larger premium reciprocity for the ceding insurer?

View solution

Q. What should be done to bring down the net profit ceded when accepting a large premium reciprocity?

View solution

Q. What impact should be considered when examining the terms of a treaty exchange through an intermediary?

View solution

Q. What can be concluded about the relationship between profitability and premium reciprocity in reciprocal reinsurance trading?

View solution

Q. What is the purpose of splitting the surplus treaty into two or three surpluses?

View solution

Q. What information do reinsurers typically want to know about rate levels and claims?

View solution

Q. In the placement of the second surplus treaty, what should be aimed for?

View solution

Q. What is the importance of the reinsurer's general business approach in the placement of higher covers?

View solution

Q. When might reinsurers agree to waive bordereaux for Auto/Fac covers?

View solution

Q. Which of the following treaty is used mainly for small accounts where the extra administrative burden of a surplus can be quite large?

View solution

Q. Which of the following measures is important for improving the national underwriting capacity and retentions?

View solution

Q. What is the primary purpose of participating in pools and ceding on an obligatory basis to national reinsurance organizations?

View solution

Q. Which entity is typically the recipient of obligatory cessions in several countries?

View solution

Q. How does participation in pools and exchange of reinsurance business benefit smaller insurers in specialized classes of business?

View solution

Q. What is one of the challenges faced by insurers when participating in pooling arrangements?

View solution

Q. Why do some countries adopt differential commission terms for insurers' cessions to pools?

View solution

Q. Why do some countries adopt differential commission terms for insurers' cessions to pools?Why do smaller insurers derive long-term benefits from participating in pools, despite potential sacrifices?

View solution