problem 1: List out the main areas of risk and uncertainty facing a general insurer?

problem 2:

a) Describe the difference between co-insurance and reinsurance.

b) Airports Ltd is looking to insure its portfolio of Rs10bn. Its broker has proposed two options:

Option 1: Airports Ltd co-insures the risk with insurers A & B, each taking 50%. The insurers each contain a quota share reinsurance arrangement where they cede 25% of each risk.

Option 2: Airports Ltd insures 100% of the risk with insurer C. The insurer has a 50/50 quota share reinsurance agreement with its reinsurer.

Supposing the reinsurer of all three companies fail to pay their share of the reinsurance recoveries, how much would each of insurer A, B and C be liable in the event of a claim of Rs 1bn?

problem 3: State the reasons why a general insurer would analyze its claims data.

problem 4: describe the effects for a general insurance company of setting unsuitable levels of technical reserves.

problem 5: List the FSC requirements with which general insurance companies should comply and describe how each serves to protect policyholders and the industry at large.