ii) H) Explain why insurance companies want smooth profits. [4] Explain why using quota-share reinsurance may...

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ii) H) Explain why insurance companies want smooth profits. [4] Explain why using quota-share reinsurance may reduce the volatility of profits for an insurance company that sells domestic property insurance. [5] Explain why using risk excess of loss reinsurance may reduce the volatility of profits for an insurance company that seils liability insurance. Explain the balance that must be struck in the monitoring stage of the actuarial control cycle. [4] ii) H) Explain why insurance companies want smooth profits. [4] Explain why using quota-share reinsurance may reduce the volatility of profits for an insurance company that sells domestic property insurance. [5] Explain why using risk excess of loss reinsurance may reduce the volatility of profits for an insurance company that seils liability insurance. Explain the balance that must be struck in the monitoring stage of the actuarial control cycle. [4]

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1 Insurance companies want smooth profits because it allows for better financial planning and stability Here are a few reasons why smooth profits are desirable Financial Stability By guaranteeing a co... View the full answer