Question

When managing the security of assets and finances, an insurer or reinsurer may decide to use credit rating information based on:

a.

Short-term nature and dynamics of the credit rating process

b.

Long-term stability of the market

c.

Personal experience in dealing with the market

d.

Regulatory requirements

Answer: (a).Short-term nature and dynamics of the credit rating process Explanation:Due to the short-term nature and dynamics of the credit rating process, an insurer or reinsurer needs to decide on their approach to using credit rating information to manage the security of their assets and finances.

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Q. When managing the security of assets and finances, an insurer or reinsurer may decide to use credit rating information based on:

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