Question

How do professional reinsurers benefit ceding insurers?

a.

They reduce the costs of reinsurance placements

b.

They offer higher commission rates for treaties

c.

They provide expertise and guidance for free

d.

They increase the stability of results for ceding insurers

Answer: (c).They provide expertise and guidance for free Explanation:Professional reinsurers provide a service that costs them significantly but is provided free to the ceding insurers. This service includes expertise and guidance. Therefore, option c is the correct answer.

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Q. How do professional reinsurers benefit ceding insurers?

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