GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Retention
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Retrocession
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Pure Life Annuity
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None of the Above
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Detailed explanation-1: -Reinsurers may also buy reinsurance protection, which is called “retrocession.” This is done to reduce any further spread risk and the impact of catastrophic loss events. Overview: Reinsurance is an essential tool insurance companies use to manage risks and the amount of capital they must hold to support those risks.
Detailed explanation-2: -The Reinsurer is the reinsurance company that takes on part of the risk assumed by the insurer (also referred to as the cedent) The Retrocessionaire is the reinsurance company that takes on part of the risk assumed by the reinsurer (also referred to as the retrocedent)
Detailed explanation-3: -Retrocession Insurance: When a reinsurance company obtains reinsurance. Spread Loss: A specific type of reinsurance in which insurance companies pay reinsurance companies premiums during low-claim years to build up a fund from which losses are recovered after loss events.