Question 1 Learning Outcome 1 (10 marks) You are an underwriter for an insurer, specialising in liability insurances for Irish industrial risks. A policyholder of the insurer, KLS plc, owns and operates a chemical processing plant. KLS plc's liability insurances are due for renewal. Following a review of the ve-year claims history for the chemical processing plant, you establish the following: - The loss ratio is considered protable for the insurer. - A signicant number of claims have arisen from exposure to chemicals. - Approximately 250 attritional claims have been settled with an average cost of 5,546. - There are 10 outstanding claims, each of which has been open for over 36 months. KLS plc wants to reduce its premium spend and has asked you for the available options. (3) Explain briey, two underwriting actions that could be implemented by the insurer, to reduce KLS plc's premium spend. (6 marks) (b) Identify, with justication, two reasons why KLS plc still has claims outstanding for more than 36 months. (4 marks)