Fall 2018 Q4

For part b ("Briefly describe two reasons why financial ratings of reinsurance companies are important,") the following is not on the examiner's report, and I'm wondering if it's because it just helps regulators, but it's not that important per se?

Regulators can use financial ratings to help determine if a reinsurer needs closer monitoring for solvency concerns.

Comments

  • Technically, this should be an acceptable answer. Financial ratings of re's are discussed in the context of their reliability as a debt instrument for primaries. That's why your answer was not featured.

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