Question

What does the type of reinsurance depend on?

a.

The insurer's risk appetite

b.

The reinsurance premiums

c.

The reason for using reinsurance

d.

The geographical location of the ceding company

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).The reason for using reinsurance Explanation:The type of reinsurance depends on factors such as the reason for using reinsurance, the costs involved, the type of business, and the legal conditions applying to the reinsurance arrangement.

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