Question

What has become an inadequate option for reinsurers due to the availability of cheap capacity in the catastrophe reinsurance market?What has compelled intermediaries in the reinsurance market to identify new ways and opportunities for business?

a.

ConsolidationIncreased competition

b.

Swaps and securitizationShrinking reinsurance market

c.

Alternative risk financingChanging regulations

d.

Short-term risk mitigationTechnological advancements

Answer: Alternative risk financingShrinking reinsurance market 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.Due to continued consolidation in the primary insurance marketplace, the world reinsurance market continues to shrink, which has compelled intermediaries to identify new ways and opportunities for business.

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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?What has compelled intermediaries in the...

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