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.

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.

Sign In or Register to comment.