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What is the main objective of surplus share treaty reinsurance?
  • a)
    To provide protection against catastrophic losses.
  • b)
    To reduce the unearned premium reserve.
  • c)
    To increase the insurer's underwriting capacity.
  • d)
    To stabilize profits.
Correct answer is option 'C'. Can you explain this answer?
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What is the main objective of surplus share treaty reinsurance?a)To pr...
The main objective of surplus share treaty reinsurance is to increase the insurer's underwriting capacity. This type of reinsurance allows the insurer to retain a portion of the risk while ceding a surplus or excess portion to the reinsurer, enabling the insurer to write more policies and accept larger risks.
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What is the main objective of surplus share treaty reinsurance?a)To provide protection against catastrophic losses.b)To reduce the unearned premium reserve.c)To increase the insurer's underwriting capacity.d)To stabilize profits.Correct answer is option 'C'. Can you explain this answer?
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