Question

What role does the captive insurance business play in the reinsurance market?

a.

It primarily serves as a fronting market

b.

It provides reinsurance support to other insurers

c.

It specializes in retrocession arrangements

d.

It serves as a captive ceding market

Answer: (d).It serves as a captive ceding market Explanation:Captive insurance business requires substantial fronting and reinsurance support, making it a major reinsurance ceding market.

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Q. What role does the captive insurance business play in the reinsurance market?

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