The major reasons for insurer insolvency include which of the following?
I.Inadequate pricing and loss reserves
II.Rapid growth and inadequate surplus

Question

Quizplus · Accepted Answer

Both inadequate pricing and loss reserves, as well as rapid growth and inadequate surplus, are major reasons for insurer insolvency. Inadequate pricing and loss reserves can lead to insurers not having enough funds to pay claims, while rapid growth without adequate surplus can strain resources and cause financial instability.

The Major Reasons for Insurer Insolvency Include Which of the Following