Question

The decision of an insurer or reinsurer to override the lower sovereign rating and deal with a market based on the individual credit rating is primarily influenced by:

a.

Regulatory requirements

b.

Industry standards

c.

Personal experience in dealing with the market

d.

Market volatility

Posted under IC85 Reinsurance Management

Answer: (c).Personal experience in dealing with the market Explanation:Such a decision would be the outcome of personal experience in dealing with the market, indicating that personal experience plays a significant role in the decision-making process.

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Q. The decision of an insurer or reinsurer to override the lower sovereign rating and deal with a market based on the individual credit rating is primarily influenced by:
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