Question

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

a.

It provides coverage for a wider range of perils

b.

It allows for higher premium rates

c.

It reduces the probability of loss payment

d.

It simplifies the claims adjustment process

Posted under IC85 Reinsurance Management

Answer: (c).It reduces the probability of loss payment Explanation:From an insurer's viewpoint, a multi-trigger cover reduces the probability of a loss payment. This is because the occurrence of multiple triggering events is required for claims to be paid. This reduced probability can potentially lead to lower premium rates for insurers.

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