Question

What was the solution to the capacity shortage in the reinsurance market?

a.

Influx of conventional capital

b.

Shift towards financial risk management

c.

Introduction of new insurance products

d.

Development of electronic means for risk management

Answer: (a).Influx of conventional capital Explanation:The capacity shortage in the reinsurance market was solved by an influx of conventional capital, which was used to establish new reinsurance companies and provide reinsurance capacity downstream.

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Q. What was the solution to the capacity shortage in the reinsurance market?

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