Question

In reinsurance, what does the term "Follow the Fortunes" mean?

a.

The reinsurer assumes all financial risks of the reinsured

b.

The reinsurer accepts all claims made by the reinsured

c.

The reinsurer follows the reinsured's investment decisions

d.

The reinsurer supports the reinsured's underwriting outcomes

Posted under IC85 Reinsurance Management

Answer: (d).The reinsurer supports the reinsured's underwriting outcomes Explanation:"Follow the Fortunes" is a concept in reinsurance where the reinsurer agrees to support the underwriting outcomes of the reinsured. The reinsurer aligns with the business decisions and results of the reinsured in all matters falling under the agreement.

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Q. In reinsurance, what does the term "Follow the Fortunes" mean?
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