Question

How do insurers or reinsurers typically approach writing inward business when starting out?

a.

Mainly through brokers and developing direct contacts

b.

Mainly on a direct basis and later through brokers

c.

Mainly through pools and brokers' covers

d.

Mainly by granting underwriting or binding authority

Answer: (a).Mainly through brokers and developing direct contacts Explanation:Insurers or reinsurers starting to write inward business will do so mainly through brokers and also try to develop their direct contacts. This suggests that initially relying on brokers is a common approach, while also working towards establishing direct relationships.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How do insurers or reinsurers typically approach writing inward business when starting out?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What should the acceptance limit of a reinsurer be based on?

Q. Why is it important for the acceptance limit to be sufficiently large?

Q. What should be emphasized when laying down guidelines for accepting business?

Q. What should be considered when determining the competent authority to make acceptances on behalf of the insurer?

Q. What is one of the considerations for justifying the cost involved in having the business in the books of the insurer?

Q. Which of the following tools help in determining quality in the case of inward reinsurance business?

Q. Which of the following is a purpose of retrocession in the reinsurance industry?

Q. In a soft market with over capacity, what is the behavior of lead underwriters regarding retrocession?

Q. Which markets provide alternative cost-effective capacity besides retrocessional markets?

Q. What is the impact of the absence of retrocessional support in a hard market?

Q. Why do ceding insurers protect the experience of their outward treaties in reciprocal trading?

Q. What are the two benefits derived from a reciprocal exchange of treaties?

Q. In which lines of business is reciprocal reinsurance trading most prevalent?

Q. In reciprocal reinsurance trading, what can be adjusted to keep the treaty exchanges balanced?

Q. What is one potential danger in accepting large premium reciprocity from a treaty with low average profitability?

Q. What are the advantages of larger premium reciprocity for the ceding insurer?

Q. According to IRDA regulations, which entities can Indian insurers write inward reinsurance business from?

Q. What is one requirement stated by IRDA regulations regarding the underwriting policy for inward reinsurance business?

Q. In inward reinsurance business, why is retrocession required?

Q. Which entities are involved in writing inward reinsurance?

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!