Question

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

a.

It involves bundling several lines of traditional risks

b.

It sets realistic goals for insurer's/reinsurer's wealth growth

c.

It measures the performance of insurance policies

d.

It focuses on the management of investment assets

Answer: (d).It focuses on the management of investment assets Explanation:Asset management refers to the professional management of investments such as stocks, bonds, real estate, etc. It plays a central role in risk transfer and risk retention financing by focusing on effectively managing the insurer's or reinsurer's investment assets to achieve growth and measure performance.

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

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