Question

What is the main reason for the establishment of subsidiaries by certain companies involved in reinsurance?

a.

To expand their direct portfolios

b.

To participate in the reinsurance market

c.

To handle inwards and outwards reinsurance

d.

To compete with specialist reinsurers

Answer: (b).To participate in the reinsurance market Explanation:A number of companies involved in reinsurance have established subsidiaries, particularly in London, to participate in the reinsurance market.

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Q. What is the main reason for the establishment of subsidiaries by certain companies involved in reinsurance?

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