Question

What is the burning cost used for in assessing a portfolio of business?

a.

Assessing profitability

b.

Assessing risk exposure

c.

Assessing underwriting performance

d.

Assessing market competitiveness

Posted under IC85 Reinsurance Management

Answer: (c).Assessing underwriting performance Explanation:The burning cost, which is the ratio of actual past losses to their corresponding premium, is used in assessing a portfolio of business. It helps in evaluating the underwriting performance of the business.

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Q. What is the burning cost used for in assessing a portfolio of business?
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