An insurer charges a loading of 30% on its policies with limit $500,000, and a loading of 33% on its policies with limit $1,000,000. It purchases stoploss reinsurance of $500,000 over $500,000. The cost of this reinsurance is 22% of total premiums. What is the reinsurer’s loading on the reinsurance policy?

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5. An insurer charges a loading of 30% on its policies with limit $500,000, and
a loading of 33% on its policies with limit $1,000,000. It purchases stoploss reinsurance of $500,000 over $500,000. The cost of this reinsurance is
22% of total premiums. What is the reinsurer’s loading on the reinsurance
policy?

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