Get premium membership and access questions with answers, video lessons as well as revision papers.

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


Next: Explain five benefits that could be enjoyed by a person who decided to take out an endowment policy.
Previous: Explain four benefits of the ‘pooling of risks’ to an insurance company

View More Business Studies Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions