Question

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

a.

Liberalization and innovative power of the capital markets

b.

Fluctuations in the financial markets

c.

The cycles of hard and soft markets in reinsurance and insurance business

d.

Growth in the corporate financing behavior

Posted under IC85 Reinsurance Management

Answer: (a).Liberalization and innovative power of the capital markets Explanation:In recent years, liberalization and the resultant innovative power of the capital markets have led to considerable expansion in the number of different products available for risk retention financing. This has opened up new avenues for insurers and corporates to manage and finance their retained risks using debt, hybrid instruments, equity tools, and other market-based solutions.

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