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      Question

      A non-life insurer has a motor insurance portfolio

      showing increasing loss ratios for three consecutive quarters, rising from 72% to 91%. What internal risk control measures should the insurer prioritize to mitigate credit and underwriting risk?
      A Cancel existing policies Correct Answer Incorrect Answer
      B Reduce sum insured Correct Answer Incorrect Answer
      C Reassess underwriting norms and increase premium Correct Answer Incorrect Answer
      D Avoid reinsurance Correct Answer Incorrect Answer
      E Shift focus to investment income Correct Answer Incorrect Answer

      Solution

      Repricing and reassessing underwriting norms are vital in controlling credit and claim risks.

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