Question

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

a.

They yield to broker pressure to quote lower rates

b.

They increase their acceptance of larger lines

c.

They exert significant influence on rate quoted by primary reinsurers

d.

They face scarcity of reinsurance offers

Posted under IC85 Reinsurance Management

Answer: (a).They yield to broker pressure to quote lower rates Explanation:In a soft market with over capacity, lead underwriters yield to broker pressure to quote lower rates. This implies that they are willing to lower their rates to secure business, and retrocession support is still forthcoming in such market conditions.

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