Question

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

a.

Higher profitability leads to higher premium reciprocity

b.

Higher profitability leads to lower premium reciprocity

c.

There is no direct relationship between profitability and premium reciprocity

d.

Premium reciprocity is solely determined by treaty capacity

Answer: (b).Higher profitability leads to lower premium reciprocity Explanation:Higher profitability leads to lower premium reciprocity in reciprocal reinsurance trading.

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

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