Question

What does the concept of "Follow the Fortunes" imply in a reinsurance relationship?

a.

The reinsurer assumes all liabilities of the ceding insurer

b.

The reinsurer follows the investment fortunes of the ceding insurer

c.

The reinsurer supports the business decisions of the ceding insurer

d.

The reinsurer participates in the underwriting process of the ceding insurer

Posted under IC85 Reinsurance Management

Answer: (c).The reinsurer supports the business decisions of the ceding insurer Explanation:The concept of "Follow the Fortunes" in a reinsurance relationship means that the reinsurer agrees to support and align with the business decisions and outcomes of the ceding insurer. The reinsurer follows the fortunes of the ceding insurer in all matters falling under the agreement.

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Q. What does the concept of "Follow the Fortunes" imply in a reinsurance relationship?
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