Question

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

a.

Dominance of professional reinsurers

b.

Increase in traditional reinsurers

c.

Shift towards non-traditional markets

d.

Reduction in capital market capacity

Posted under IC85 Reinsurance Management

Answer: (c).Shift towards non-traditional markets Explanation:There have been dramatic changes in the methods and forms used in the reinsurance industry. One of these changes is the use of non-traditional markets, which adds to the traditional reinsurers. This shift in the composition of reinsurance capacity means that capacity is now available from both reinsurance and capital markets.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What is the purpose of a retrocession treaty?

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. Which factor is important to consider when determining the territorial scope of reinsurance business?

View solution

Q. Which markets may an insurer or reinsurer wish to avoid for political or economic reasons?

View solution

Q. Why might a new entrant in the reinsurance business start with domestic business?

View solution

Q. Why might an insurer or reinsurer initially prefer to write only short-tail business?

View solution
View All MCQs on IC85 Reinsurance Management

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!

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...

Environment Management

Master the art of Environment Management with our specialized category. Explore...