Question

How might reinsurer's rates influence mortality assumptions?

a.

By providing additional data for analysis

b.

By setting industry standards for mortality rates

c.

By affecting the cost of reinsurance and risk management strategies

d.

By influencing regulatory requirements for mortality assumptions

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).By affecting the cost of reinsurance and risk management strategies Explanation:Reinsurer's rates may influence mortality assumptions by affecting the cost of reinsurance and risk management strategies, thereby influencing the mortality rates used for pricing and reserving purposes.

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Q. How might reinsurer's rates influence mortality assumptions?
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