Question

What is a "Portfolio Transfer" in the insurance and reinsurance industry?

a.

The transfer of insurance liability from a reinsurer to an insurer

b.

The transfer of unearned premium reserve on policies from an insurer to a reinsurer

c.

The transfer of outstanding losses under policies from an insurer to a reinsurer

d.

The transfer of an insurer's investment portfolio to a reinsurer

Posted under IC85 Reinsurance Management

Answer: (a).The transfer of insurance liability from a reinsurer to an insurer Explanation:A "Portfolio Transfer" involves the transfer of in-force insurance liability from an insurer to a reinsurer (or vice versa). This can be done by paying the unearned premium reserve or the outstanding loss reserve. The former is known as a premium portfolio transfer, and the latter is a loss portfolio transfer.

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Q. What is a "Portfolio Transfer" in the insurance and reinsurance industry?
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