Question

The practice of reciprocal reinsurance trading is more often used in the case of __________ business.

a.

Fire insurance

b.

Life insurance

c.

Aviation insurance

d.

Accident/liability insurance

Posted under IC85 Reinsurance Management

Answer: (a).Fire insurance Explanation:The practice of reciprocal reinsurance trading is more commonly used in the case of fire insurance. Reciprocal reinsurance involves an arrangement where insurers agree to share risks with each other. Fire insurance, which provides coverage for damages and losses caused by fire, often involves a higher frequency of claims compared to other lines of business. To manage this risk effectively, insurers may engage in reciprocal reinsurance trading, allowing them to spread the risk and share the burden of fire-related claims with other insurers.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. The practice of reciprocal reinsurance trading is more often used in the case of __________ business.
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which of the following is a benefit derived by ceding insurers from a reciprocal exchange of reinsurance treaties?

View solution

Q. Which of the following treaty can be placed in weak reinsurance market conditions?

View solution

Q. Which of the following is issued by an intermediary after the issue of cover note?

View solution

Q. Can professional reinsurers provide 100% premium or profit reciprocity?

View solution

Q. What is the role of an intermediary in reciprocal reinsurance negotiations?

View solution

Q. How does market pooling work in the insurance industry?

View solution

Q. What is group underwriting in the insurance industry?

View solution

Q. In which lines of business is reciprocal reinsurance trading more commonly used?

View solution

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

View solution

Q. What is the purpose of involving professional reinsurers and intermediaries in the programme design stage?

View solution

Q. As per market practice, the intermediary issues a cover note to the insurer. Which of the following is not included in it?

View solution

Q. What is the common objective of both direct placements and dealing through intermediaries?

View solution

Q. What is the advantage of using intermediaries in a soft market?

View solution

Q. What is one of the challenges faced by intermediaries in the reinsurance market?

View solution

Q. What is the main difference between direct placements and dealing through intermediaries?

View solution

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

View solution

Q. What is the importance of keeping the structure of reinsurance arrangements and terms under constant review?

View solution

Q. Why should one exercise caution when examining offers with lower rates from different reinsurers?

View solution

Q. What is the purpose of arranging working covers on a per event basis and dovetailing them into the catastrophe cover?

View solution

Q. What should be considered when selecting a reinsurer for the placement of top surplus?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Waste Water Engineering

Navigate the challenges of wastewater treatment and management with our Waste Water...

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Verbal Ability

Hone your language and communication skills with our Verbal Ability category. Enhance...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...