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Reinsurance Management

iii. Pools - a group of insurance companies that
pools assets, enabling them to provide an
amount of insurance substantially more than
can be provided by individual companies to
ensure large risks such as nuclear power
stations are protected.

iv. Captives - is an insurer created and wholly owned
by its sponsors to provide a facility to aggregate,
insure and reinsure their risks.

Q17. What are the features of alternate risk
transfer products.

Ans: All alternate risk transfer products have one or
more of the following features:
i. Custom-tailored to the unique needs of the client
ii. Coverage provided on a multiyear basis
iii. Coverage applicable to multiple lines
iv. Payoff can be triggered by multiple factors, rather
than a single event.

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