BA card #45
The second bullet point says:
"its purpose is to identify concentration of insurance risk."
Should that be "credit risk" or "collectability risk" instead?
Or is credit risk a component of insurance risk?
Thanks.
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The second bullet point says:
"its purpose is to identify concentration of insurance risk."
Should that be "credit risk" or "collectability risk" instead?
Or is credit risk a component of insurance risk?
Thanks.
Comments
Insurance risk here is not exactly a technical term. The "insurance" is reinsurers insuring the reporting entity. The question is whether the reinsurance portfolio is diversified.