Question

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

a.

It leads to an increase in the acceptance of larger lines

b.

It results in scarce reinsurance offers

c.

It exerts significant influence on rate quoted by lead underwriters

d.

It yields to broker pressure to quote lower rates

Answer: (c).It exerts significant influence on rate quoted by lead underwriters Explanation:The absence of retrocessional support in a hard market exerts significant influence on the rate quoted by lead underwriters, who are the primary reinsurers. This means that the lack of retrocessional support affects the pricing decisions made by lead underwriters in a challenging market environment.

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

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