Question

In the insurance sector, what is the equivalent to the Gross Profit Ratio, and why is it important?

a.

Operating Profit Ratio; for risk-selection and risk-analysis

b.

Net Profit Ratio; for risk-acceptance and risk-rating

c.

Underwriting Result Ratio; for risk-selection, risk-analysis, risk-acceptance, and risk-rating

d.

Return on Investment (ROI); for risk-management and underwriting policy

Answer: (c).Underwriting Result Ratio; for risk-selection, risk-analysis, risk-acceptance, and risk-rating Explanation:In the insurance sector, the equivalent to the Gross Profit Ratio is the Underwriting Result Ratio, which is important for risk-selection, risk-analysis, risk-acceptance, and risk-rating.

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Q. In the insurance sector, what is the equivalent to the Gross Profit Ratio, and why is it important?

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