Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A)Measuring and managing credit and interest rate risk are key concerns of general insurance managers.
• B)If pure losses, underwriting losses and other costs are higher and investment yields lower than expected, general insurers suffer a significant amount of deficit reserves.
• C)On average, underwriting cycles measured from peak to peak can last anywhere from 12 to 20 years.
• D)Measuring and managing credit and interest rate risk are key concerns of general insurance managers and if pure losses, underwriting losses and other costs are higher and investment yields lower than expected, general insurers suffer a significant amount of deficit reserves.

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Definitions:

IFRS

International Financial Reporting Standards (IFRS) are a set of accounting rules and standards issued by the International Accounting Standards Board (IASB) that aim to bring consistency to financial reporting across the globe.

Condensed Income Statements

A simplified version of an income statement that presents only the most essential information, typically revenue, expenses, and net income, over a specific period.

Private Enterprises

Businesses that are privately owned and operated, and not publicly traded on stock exchanges.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.