Question

Why do ceding insurers protect the experience of outward treaty in reciprocal reinsurance trading?

a.

To utilize the full treaty capacity for hazardous risks

b.

To arrange excess of loss cover for the treaty portfolio

c.

To strengthen their relationship with professional reinsurers

d.

To maximize their profitability in the reinsurance market

Answer: (b).To arrange excess of loss cover for the treaty portfolio Explanation:Ceding insurers protect the experience of outward treaty in reciprocal reinsurance trading by measures such as arranging excess of loss cover to safeguard the treaty portfolio.

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Q. Why do ceding insurers protect the experience of outward treaty in reciprocal reinsurance trading?

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