Question

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

a.

It provides financial assistance to smaller insurers

b.

It reduces competition among smaller insurers

c.

It enables specialization in specific classes of business

d.

It increases the administrative burden on smaller insurers

Posted under IC85 Reinsurance Management

Answer: (c).It enables specialization in specific classes of business Explanation:National reinsurance organizations developed through participation in pools and intensive exchange of reinsurance business can provide assistance within the country to smaller insurers in specialized classes of business. This implies that smaller insurers can benefit from the expertise and support provided by the national reinsurance organizations, enabling them to specialize and excel in specific classes of business. Therefore, option c is the correct answer.

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