Question

Why do insurers aim to be in touch with developments in reinsurance thinking and techniques in other countries?

a.

To minimize underwriting losses

b.

To expand their business internationally

c.

To establish partnerships with foreign reinsurers

d.

To act as a "window" on international reinsurance markets

Answer: (d).To act as a "window" on international reinsurance markets Explanation:Insurers may engage in inward reinsurance to be in touch with the developments in reinsurance thinking and techniques in other countries. This allows them to serve as a "window" on international reinsurance markets and stay informed about industry trends and practices.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why do insurers aim to be in touch with developments in reinsurance thinking and techniques in other countries?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. For which of the following reasons does ‘direct writing insurance companies’ start to write inward reinsurance business?

Q. What is a key requirement for an insurer or reinsurer to transact inward reinsurance business?

Q. Why is intimate knowledge of markets and classes of business essential for transacting inward reinsurance business?

Q. What has changed in the composition of reinsurance capacity in recent years?

Q. Why should an insurer or reinsurer plan to write a reasonably large line when transacting inward reinsurance business?

Q. What percentage of global reinsurers rely on retrocessional protection?

Q. What is the purpose of retrocession in the risk management process of reinsurers?

Q. How does credit rating assist in determining the quality of retrocession offers?

Q. What is the role of a management information system in writing inward reinsurance?

Q. How can accumulation risks arising from inward reinsurance business be controlled?

Q. What are the two options available to an insurer or reinsurer accepting reinsurance business?

Q. Why might an insurer or reinsurer starting to write reinsurance business initially choose to write only net lines?

Q. What is the purpose of a retrocession treaty?

Q. Why might selling a retrocession treaty placed abroad be challenging?

Q. What is the relationship between over-riding commission and administrative cost in a retrocession arrangement?

Q. Which type of reinsurance business involves more administrative work?

Q. In which type of reinsurance business is premium volume built up faster?

Q. What distinguishes proportional reinsurance from non-proportional reinsurance?

Q. What advantage does non-proportional reinsurance offer to the reinsurer?

Q. What type of reinsurance involves accumulations under various treaties?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!