Question

What is "Portfolio Runoff" in reinsurance?

a.

The transfer of insurance liability from an insurer to a reinsurer

b.

The process of continuing to reinsure a portfolio until all ceded premium is earned or all losses are settled

c.

The transfer of outstanding losses under policies from the reinsurer to the insurer

d.

The ongoing management of an insurer's investment portfolio

Posted under IC85 Reinsurance Management

Answer: (b).The process of continuing to reinsure a portfolio until all ceded premium is earned or all losses are settled Explanation:"Portfolio Runoff" can be defined as the process of reinsuring a portfolio until all ceded premium is earned or all losses are settled, or both. It involves the ongoing management of the portfolio until all obligations are fulfilled.

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Q. What is "Portfolio Runoff" in reinsurance?
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