Question

How is capacity measured for an insurer?

a.

By its financial reserves

b.

By its market share

c.

By its underwriting expertise

d.

By its capability to accept risk

Posted under IC85 Reinsurance Management

Answer: (d).By its capability to accept risk Explanation:Capacity is a measure of an insurer's capability to accept a level of risk as proposed. It indicates the insurer's readiness to assume insurance or reinsurance business.

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