Answer Happy

5. (6 points) 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 that the ceding insurer should use, and explain the reasons for your answer: a) Company A is an established insurer and is primarily interested in having protection against a catastrophic loss arising out of a single occurrence. b) Company B would like to increase its underwriting capacity to underwrite new business.