What do you understand by reinsurance, Finance Basics

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Question 1:

(a) (i) What are Asset shares?
(ii) State the purpose of calculating Asset shares.

(b) Outline the five uses of policy Asset shares?

(c) Life Insurance companies are affected by economic and environmental factors. List any six of these factors and elaborate on each of them?

(d) List and explain four ways how to overcome threats on business environment?

Question 2:

(a) There a number of different types of risk that can affect the investments of businesses. What are these risks?

(b) Briefly explain the Risk Management Process.

(d) State the four ways of dealing with, or managing, each risk that a company has identified?

Question 3:

(a) What do you understand by ‘Reinsurance'?

(b) What are the benefits of Reinsurance?

(d) Briefly explain how do insurers transfer risks to reinsurers.

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