Question

How do reinsurers estimate outstanding losses for acceptances?

a.

Estimated losses as advised by the ceding insurer

b.

Latest available date plus large losses intimated subsequently

c.

Provision for portfolio entry in the treaty

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:Reinsurers estimate outstanding losses for acceptances using various methods. These include considering estimated losses as advised by the ceding insurer, incorporating the latest available date plus large losses intimated subsequently, and including a provision for portfolio entry in the treaty. These methods are employed to make reasonably accurate estimates of outstanding losses.

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Q. How do reinsurers estimate outstanding losses for acceptances?
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