Question

What is driving the increased demand for ART products?

a.

Higher reinsurance prices driven primarily by a shortage of capacity in the retrocession market.

b.

Increased fluctuations in the financial market.

c.

Exploitation of tax and regulatory asymmetries.

d.

Providing multi-year covers through securitization of risk and derivatives.

Posted under IC85 Reinsurance Management

Answer: (a).Higher reinsurance prices driven primarily by a shortage of capacity in the retrocession market. Explanation:Higher reinsurance prices driven primarily by a shortage of capacity in the retrocession market - the reinsurance of reinsurance - are being reflected in increased demand for ART products.

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