1. The reinsurance market provides many benefits to insurers, especially newly formed insurance companies What are the main reasons insurers use reinsurance?

2. Star Alliance insures 311, 2 cars in one country. The company expects to pay $39,838,720 in incurred losses and loss adjustment expenses for insured damages to these cars. Based on their previous expense ratio, the insurer wants to allow for 36% for other expenses, profit , and a margin for contingencies . Calculate the gross premium paid by the insureds? (show all calculations )

(0.5Marks)