Question
a.
Ceding insurers are able to secure a profit advantage on the strength of the superior balance of their portfolio.
b.
It does not enable direct insurers to produce a more balanced book of business for themselves and for their treaty reinsurers.
c.
It provides a wider spread for the net retained portfolio of the insurer with an improved balance, thus ensuring greater stability in underwriting surplus.
d.
This arrangement is useful in widely dispersed risks such as in agriculture exposed to pest damage.
Posted under IC85 Reinsurance Management
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Q. Which of the following is a benefit derived by ceding insurers from a reciprocal exchange of reinsurance treaties?
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