Please kindly help to get the right answer for this MCQ.Please find attached the questions and answer.Grateful to assistClimate change, infrastructure concerns, and socio-economic challenges are creating a difficult environment for South African insurers, which is expected to put further strain on already cash-strapped South Africans. South Africa is no longer insulated against large catastrophic events like those in the Asia-Pacific, Europe, and the United States of America. The July 2021 unrest caused an estimated R50 billion in economic losses, while the 2022 KwaZulu-Natal flood losses resulted in an estimated R54 billion - half of that total was carried by the insurance industry. The growing number of large catastrophe reinsurance claims locally, coupled with rising global losses, has caused reinsurance premiums to increase significantly. This volatility in the reinsurance market will likely become the new normal. Tavaziva Madzinga, Santam Group CEO, said, "The above challenge for the insurance industry represents an economic problem of scarcity." "Climate change, infrastructure concerns and socio-economic challenges are creating a difficult environment for South African insurers, whichis expected to put further strain on already cash-strapped South Africans.South Africa is no longer insulated against large catastrophic events like those in the Asia-Pacific, Europe, and the United States of America.The July 2021 unrest caused an estimated R50 billion in economic losses, whilst the 2022 KwaZulu-Natal flood losses resulted in an estimatedR54 billion-half that total was carried by the insurance industry."The growing number of large catastrophe reinsurance claims locally, coupled with rising global losses, has caused reinsurance premiums toincrease significantly. This volatility in the reinsurance market will likely become the new normal," Tavaziva Madzinga, Santam Group CEO,saidThe above challenge for insurance industry represents...A.economic problem of scarcity.B.the opportunity cost of large catastrophic events.Cthe opportunity cost of insurance.D.the trade off for insurance.

The passage highlights the significant obstacles that South African insurers face, chief among them…

Answered: "Climate change, infrastructure…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please kindly help to get the right answer for this MCQ. Please find attached the questions and answer. Grateful to assist Climate change, infrastructure concerns, and socio-economic challenges are creating a difficult environment for South African insurers, which is expected to put further strain on already cash-strapped South Africans. South Africa is no longer insulated against large catastrophic events like those in the Asia-Pacific, Europe, and the United States of America. The July 2021 unrest caused an estimated R50 billion in economic losses, while the 2022 KwaZulu-Natal flood losses resulted in an estimated R54 billion - half of that total was carried by the insurance industry. The growing number of large catastrophe reinsurance claims locally, coupled with rising global losses, has caused reinsurance premiums to increase significantly. This volatility in the reinsurance market will likely become the new normal. Tavaziva Madzinga, Santam Group CEO, said, "The above challenge for the insurance industry represents an economic problem of scarcity."