Why might an insurer choose to purchase reinsurance even if it has sufficient capital to cover potential losses?
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A
Because MAS requires all Singapore insurers to maintain a minimum level of reinsurance at all times
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B
To stabilise underwriting results, increase capacity, and protect against catastrophic or unexpected losses
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C
Because reinsurance premiums are tax-deductible under Singapore law, providing a financial incentive
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D
To reduce the number of policies they issue and limit their overall market share