(b) Reinsurance can be used by an insurer to solve several problems. Assume that you are approached by a reinsurer for advice. For each of the following situations, recommend and explain to the reinsurer what would be the appropriate reinsurance plan or arrangement to offer the ceding insurer: (i) Company A is a primary insurer and it is a stable client of the reinsurer. Company A offers automobile insurance and it wants to reinsure 50% of its losses. (3 marks) (ii) Company B is a primary insurer. Currently, Company B is not a client of the reinsurer. Recently, B has introduced a new insurance product covering the risk of loss on yachts. The average insured value is estimated to be RM300,000. (2 marks) (iii) The reinsurer provides coverage for nuclear power plant property and liability risk and it wants to reinsure the risk with other insurance companies. (3 marks) (b) Reinsurance can be used by an insurer to solve several problems. Assume that you are approached by a reinsurer for advice. For each of the following situations, recommend and explain to the reinsurer what would be the appropriate reinsurance plan or arrangement to offer the ceding insurer: (i) Company A is a primary insurer and it is a stable client of the reinsurer. Company A offers automobile insurance and it wants to reinsure 50% of its losses. (3 marks) (ii) Company B is a primary insurer. Currently, Company B is not a client of the reinsurer. Recently, B has introduced a new insurance product covering the risk of loss on yachts. The average insured value is estimated to be RM300,000. (2 marks) (iii) The reinsurer provides coverage for nuclear power plant property and liability risk and it wants to reinsure the risk with other insurance companies