Question

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

a.

Finite reinsurance

b.

Run-off covers

c.

Debt financing

d.

Hybrid and equity tools

Answer: (a).Finite reinsurance Explanation:Risk retention financing involves assisting insurers and corporates in financing their retention. A classic field of activity for reinsurers in this approach is finite reinsurance. Finite reinsurance involves structuring reinsurance contracts with specific terms and limits to provide financial support for the retained risk.

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

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