Question

What is the benefit of good reinsurance arrangements for the insurer?

a.

Increased competition among intermediaries for business

b.

Efficient and speedy service to the insurer's clients

c.

Higher claims experience and rate levels

d.

Lower costs of catastrophe cover

Answer: (b).Efficient and speedy service to the insurer's clients Explanation:Good reinsurance arrangements provide a great deal of confidence to the reinsurers and enable the insurer to provide efficient and speedy service to their own clients. This indicates that well-structured reinsurance arrangements contribute to the insurer's ability to serve their clients effectively. Therefore, option b is the correct answer.

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Q. What is the benefit of good reinsurance arrangements for the insurer?

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