Question

What is the purpose of group underwriting and retention?

a.

To increase individual retention levels

b.

To form market pools for redistribution of risks

c.

To combine the capacities of all group companies

d.

To reduce the administrative burden of reinsurance

Posted under IC85 Reinsurance Management

Answer: (c).To combine the capacities of all group companies Explanation:Group underwriting involves combining the retention levels of individual insurers that have common management or ownership. The purpose is to utilize the combined capacity of all the group companies and operate a group reinsurance program. Therefore, option c is the correct answer.

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Q. What is the purpose of group underwriting and retention?
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