Can somone answer this for me please? It would be much appreciated. Thanks

Question 3 a) Explain what is meant by treaty compression and provide an example of how it can occur in a reinsurance programme. (5 marks)

b) An insurer agrees a surplus treaty where its own retention is 150,000 and the reinsurers limit is 5 lines. What is the automatic capacity of the treaty? (3 marks)

c) An insurer has two WXL/R contracts in place as follows; 1 million xs 500,000 and 1 million xs 1.5 million. It also has a CatXL arrangement of 10 million xs 1 million. A risk event occurs triggering all reinsurance arrangements. Losses on three properties are as follows: Risk A 2.35 million Risk B 1.72 million Risk C 1.20 million How are losses allocated between the insurer and the three reinsurers? (12 marks)

d) Catastrophe modelling is used to answer key business questions. What are these key business questions? (5 marks)

Total 25 marks