Question

Why is careful control required for accumulation hazards in reinsurance business?

a.

To assess historical exchange of results

b.

To ensure timely availability of acceptances

c.

To validate assumptions made during the acceptance process

d.

To manage exposures due to catastrophic perils

Answer: (d).To manage exposures due to catastrophic perils Explanation:Careful control is required for accumulation hazards in reinsurance business to manage exposures due to catastrophic perils such as earthquakes, storms, tornados, and others. These perils pose significant risks, and effective control measures are necessary to mitigate potential losses.

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Q. Why is careful control required for accumulation hazards in reinsurance business?

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