Question

Why did corporate customers evaluate the total cost of risk financing?

a.

To eliminate expenses and profits of an insurer

b.

To include uninsurable risks with alternative risk techniques

c.

To understand the logic in buying insurance from a smaller insurer

d.

To maximize return on shareholder funds

Posted under IC85 Reinsurance Management

Answer: (a).To eliminate expenses and profits of an insurer Explanation:Corporate customers evaluated the total cost of risk financing to determine the most cost-effective approach. By eliminating the expenses and profits associated with traditional insurance, they sought to optimize the allocation of their funds and reduce unnecessary expenditures. This evaluation was part of their broader understanding and grasp of risk financing techniques.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why did corporate customers evaluate the total cost of risk financing?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. When do alternative market products become relatively attractive to insurance buyers?

View solution

Q. Which of the following is not a technique of risk management?

View solution

Q. What is the objective of risk transfer?

View solution

Q. What is a classic field of activity for reinsurers in the risk retention financing approach?

View solution

Q. What has led to considerable expansion in the number of different products available for risk retention financing?

View solution

Q. What is the role of asset management in risk transfer and risk retention financing?

View solution

Q. What is the significance of investment income in the premium calculation?

View solution

Q. What is the concept of a multi-line/multi-year package in reinsurance?

View solution

Q. What are the benefits of a multi-line/multi-year package in reinsurance?

View solution

Q. What is the key feature of a multi-trigger cover in insurance?

View solution

Q. What is an example of a double-trigger policy?

View solution

Q. What is the advantage of a multi-trigger cover for insurers?

View solution

Q. What is the purpose of contingent capital in risk management?

View solution

Q. How does contingent capital function in risk financing?

View solution

Q. What is a variant to the assurance of contingent capital?

View solution

Q. Why are contingent capital solutions popular with direct insurers?

View solution

Q. What is the main idea behind a Finite Risk program?

View solution

Q. What is the characteristic of premium payments in a Finite Risk program?

View solution

Q. How are finite risk solutions typically written?

View solution

Q. What is the role of investment income in premium calculation for Finite Risk programs?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Total Quality Management

Enhance your understanding of quality management with our Total Quality Management...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Virology

Explore the captivating world of Virology with our specialized category. Dive into...

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Fluid Mechanics

Unlock the mysteries of fluids and their behavior with our Fluid Mechanics category....