Explain the factors that may make it necessary for an insurance company re-insure

      

Explain the factors that may make it necessary for an insurance company re-insure

  

Answers


Davis
-value of property: when the value of property is great
- High risk of loss: when chances of loss through insured risks covered
- Number of risks covered: when insurance company has insured many
different risks.
- Spread of risk to share liability in the event of loss, safeguard the
financial position
- Government policy: government may require an insurance company to reinsure
- Create client confidence: client confidence: clients will have confidence as they are assured
of compensation hence attracts more customers
Githiari answered the question on September 20, 2017 at 09:51


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