1. 

   td290 Member

   Question reads:
   

   Amongst the points in the examiners' report we have:
   

   Surely the mortality experience is not affected by reinsurance? Reinsurance doesn't affect the insured events, only the net financial loss incurred by the insurer.

    

   Last edited by a moderator: Apr 9, 2012

   td290, Apr 9, 2012

   #1
2. 

   Katherine Young ActEd Tutor Staff Member

   Quite right, reinsurance won't affect the mortality experience itself, but the question says that the contract generated a profit. So we'd like to know how much of the profit was generated from the mortality experience alone, and how much of the profit much would be due to reinsurance recoveries.

    

   Katherine Young, Apr 10, 2012

   #2

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