Question

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

a.

To mitigate the risks associated with earthquakes and storms

b.

To maximize profitability in catastrophic perils

c.

To ensure uniform exposures across different locations

d.

To minimize the impact of frequency, timing, and severity variations

Posted under IC85 Reinsurance Management

Answer: (a).To mitigate the risks associated with earthquakes and storms Explanation:The primary purpose of controlling accumulation hazards in reinsurance is to mitigate the risks associated with earthquakes, storms, tornados, and other catastrophic perils. By carefully managing exposures to these hazards, reinsurers can minimize potential losses and ensure the stability of their portfolios.

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