Question

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

a.

It increases credibility of the primary insurer

b.

It helps in calculating reinsurance premiums

c.

It ensures timely availability of outstanding claims provisions

d.

It facilitates inspection of books of account by reinsurers

Answer: (a).It increases credibility of the primary insurer 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.

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

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