Question

In what scenario is retrocessional support particularly influential in inward reinsurance?Which type of reinsurance trading is considered important by ceding insurers?

a.

When market is hardRetrocession trading

b.

When market is softReciprocal trading

c.

When market is stableExcess of loss trading

d.

When market is unpredictableSurplus trading

Posted under IC85 Reinsurance Management

Answer: When market is hardReciprocal trading Explanation:The absence of retrocessional support, when the market is hard, exerts a significant influence on the rate quoted by the lead underwriter as the primary reinsurer.Reciprocal reinsurance trading is considered important by ceding insurers, and they value their outward treaties that form the basis of their reciprocal trading.

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Q. In what scenario is retrocessional support particularly influential in inward reinsurance?Which type of reinsurance trading is considered important by ceding insurers?
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