Answers needed for each part with step by step solution thanks :)

i) State six reasons why a direct insurer would use reinsurance. (3 Marks) Describe, and illustrate with an example, how claims equalisation reserves can ii) be used to reduce the impact of variable claims experience on the declared profits of a company (4 Marks) ii) In a particular country the reinsurance industry has demanded that the use of claims equalisation reserves can only be used to reduce the impact of claims variability. Discuss why the reinsurance industry has made this demand and why it may be problematic to enforce. (5 Marks) A direct insurance company writes a number of different lines including product liability insurance. For this line of business it uses facultative individ ual excess of loss Explain why the direct insurer uses facultative rather than treaty reinsurance for iv) this line of business (5 Marks) For one of the contracts the direct insurer has decided to use reinsurance company X rather than reinsurance company Y even though reinsurance company X has quoted a more expensive premium. Discuss why the direct insurer may have come to this decision (5 Marks) The company also writes some commercial property insurance in its home country. For these policies the direct insurer uses a surplus reinsurance treaty The treaty with the reinsurance company has 9 lines and a maximum retention of 200,000. One risk that was covered by the treaty had an EML of 800,000 and generated a claim of 500,000. vi) Calculate the amount of claim that the two companies were liable for if the direct insurer used a. Maximum retention; b. Minimum retention. (3 Marks) i) State six reasons why a direct insurer would use reinsurance. (3 Marks) Describe, and illustrate with an example, how claims equalisation reserves can ii) be used to reduce the impact of variable claims experience on the declared profits of a company (4 Marks) ii) In a particular country the reinsurance industry has demanded that the use of claims equalisation reserves can only be used to reduce the impact of claims variability. Discuss why the reinsurance industry has made this demand and why it may be problematic to enforce. (5 Marks) A direct insurance company writes a number of different lines including product liability insurance. For this line of business it uses facultative individ ual excess of loss Explain why the direct insurer uses facultative rather than treaty reinsurance for iv) this line of business (5 Marks) For one of the contracts the direct insurer has decided to use reinsurance company X rather than reinsurance company Y even though reinsurance company X has quoted a more expensive premium. Discuss why the direct insurer may have come to this decision (5 Marks) The company also writes some commercial property insurance in its home country. For these policies the direct insurer uses a surplus reinsurance treaty The treaty with the reinsurance company has 9 lines and a maximum retention of 200,000. One risk that was covered by the treaty had an EML of 800,000 and generated a claim of 500,000. vi) Calculate the amount of claim that the two companies were liable for if the direct insurer used a. Maximum retention; b. Minimum retention