Question

How does an accurate and efficient information system benefit the primary insurer in reinsurance business?What is the purpose of maintaining accurate statistics in reinsurance business?

a.

It increases credibility of the primary insurerTo determine the portion of policy/ies ceded to each surplus share reinsurer

b.

It helps in calculating reinsurance premiumsTo identify risks included in the treaty but not ceded for preserving profitability

c.

It ensures timely availability of outstanding claims provisionsTo exclude risks underwritten by the primary insurer from the reinsurance bordereau

d.

It facilitates inspection of books of account by reinsurersTo periodically monitor the performance of each reinsurance arrangement

Answer: It increases credibility of the primary insurerTo periodically monitor the performance of each reinsurance arrangement Explanation:An accurate and efficient information system helps in increasing the credibility of the primary insurer. It provides reliable data and information, which enhances the trust and confidence of reinsurers. This, in turn, improves the chances of successful treaty renewals.Maintaining accurate statistics in reinsurance business allows for the periodic monitoring of the performance of each reinsurance arrangement. It helps in evaluating the effectiveness and profitability of the arrangements and enables remedial action to be taken if needed.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does an accurate and efficient information system benefit the primary insurer in reinsurance business?What is the purpose of maintaining accurate statistics in reinsurance...

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How does an accurate and efficient information system benefit the primary insurer in reinsurance business?

Q. What information must the primary insurer make available for inspection by the reinsurer?

Q. What types of reinsurance statistics are required for effective control?

Q. When should a major review of acceptances in a treaty be conducted?

Q. What is the purpose of gathering and analyzing reinsurance statistics?

Q. What should be reviewed in relation to the accounted premium of a treaty?

Q. Which individuals are responsible for conducting reviews of reinsurance treaties?

Q. What factors should be considered when tendering a provisional notice of cancellation to the ceding insurer?

Q. How long is the typical monitoring period to assess the quality of a treaty?

Q. What information is summarized in a sheet for treaties with reciprocal exchange?

Q. What factors are considered when reviewing excess of loss reinsurance?

Q. What actions should be taken when a provisional notice of cancellation is given by the ceding insurer?

Q. How do reinsurers estimate outstanding losses for acceptances?

Q. Which method can be used to estimate outstanding claims if renewal statistics information is provided?

Q. What does IBNR stand for in the context of estimating outstanding claims?

Q. Why is it important to combine different methods and maintain consistency in making provisions for outstanding losses?

Q. What is the purpose of making an additional provision for claims incurred but not reported (IBNR)?

Q. What is the primary purpose of controlling accumulation hazards in reinsurance?

Q. What is the role of underwriters in controlling accumulation hazards?

Q. How is the magnitude of an earthquake measured?

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!