Question

What has become an inadequate option for reinsurers due to the availability of cheap capacity in the catastrophe reinsurance market?

a.

Consolidation

b.

Swaps and securitization

c.

Alternative risk financing

d.

Short-term risk mitigation

Answer: (c).Alternative risk financing Explanation:With the arrival of cheap capacity in the catastrophe reinsurance market through swaps and securitization, providing capacity alone is no longer an option for any reinsurer.

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Q. What has become an inadequate option for reinsurers due to the availability of cheap capacity in the catastrophe reinsurance market?

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