Question

What approach should underwriters take to accumulations arising from catastrophic perils?

a.

Maintain exhaustive control on each peril

b.

Modify the underwriting policy based on the dangers involved

c.

Ignore accumulations and focus on individual risks

d.

Seek external assistance to manage accumulations

Answer: (b).Modify the underwriting policy based on the dangers involved Explanation:Underwriters should modify their underwriting policy based on the dangers involved in accumulations arising from catastrophic perils. While maintaining exhaustive control on each peril may not be practicable, underwriters need to be aware of the risks associated with accumulations and adjust their underwriting approach accordingly. This ensures appropriate risk management and mitigation strategies are in place.

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Q. What approach should underwriters take to accumulations arising from catastrophic perils?

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