Q1. Reinsurance can be used by an insurer to solve several problems. Assume you are an insurance consultant who is asked
Posted: Fri May 20, 2022 7:00 am
Q1. Reinsurance can be used by an insurer to solve several
problems. Assume you are an insurance consultant who is asked to
give recommendations concerning the type of reinsurance plan or
arrangement to use. For each of the following situations, indicate
the type of reinsurance plan or arrangement that the ceding insurer
should use, and explain the reasons for your answer.
a. Company A is a primary insurer and your stable client. It starts
offering automobile insurance
and wants to reinsure 50% of the losses.
b. Company B, currently not your client, is a primary insurance
company that introduces a new
insurance product covering a risk of loss on yachts. The average
value of a transport plane
is €300,000.
c. A pool of insurers covering a nuclear power plant property and
liability risk wants to reinsure
this risk in your company.
plz provide the answer in word.
problems. Assume you are an insurance consultant who is asked to
give recommendations concerning the type of reinsurance plan or
arrangement to use. For each of the following situations, indicate
the type of reinsurance plan or arrangement that the ceding insurer
should use, and explain the reasons for your answer.
a. Company A is a primary insurer and your stable client. It starts
offering automobile insurance
and wants to reinsure 50% of the losses.
b. Company B, currently not your client, is a primary insurance
company that introduces a new
insurance product covering a risk of loss on yachts. The average
value of a transport plane
is €300,000.
c. A pool of insurers covering a nuclear power plant property and
liability risk wants to reinsure
this risk in your company.
plz provide the answer in word.