Question

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

a.

To attract business with quality

b.

To minimize claim costs

c.

To reduce acceptances in adverse markets

d.

To decrease reinsurance expenses

Answer: (a).To attract business with quality Explanation:An insurer or reinsurer should plan to write a reasonably large line when transacting inward reinsurance business. This is because writing a larger line helps attract business with quality, and it also helps keep the costs of acceptances economical.

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

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