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Chapter 9 Reinsurance market 9/35

Self-test questions

1. List five of the characteristics that Herve-Bazin feels typifies an ‘ideal’ international reinsurance centre.
2. What are the two main components of the London reinsurance market?
3. Identify the three links in the chain of security at Lloyd’s.
4. Name three European centres favoured for the establishment of captive insurance companies.
5. Is reinsurance regulation in the USA conducted at a federal or state level?

6. What event encouraged new highly capitalised companies to set up in the Bermudian reinsurance market?
7. Name three leading reinsurance markets in Asia.
8. What happens to reinsurance capacity and investment returns during the ‘soft’ phase of a market cycle?
9. When investment income is low, why is it essential that reinsurers work to a prudent underwriting
discipline?
10. How often are financial ratings on reinsurers usually evaluated?

You will find the answers at the back of the book Reference copy for CII Face to Face Training Chapter

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