Question

Why is accurate claims reserving crucial for insurers?

a.

Accurate claims reserving ensures higher dividends for shareholders

b.

Accurate claims reserving is essential for the continuing profitability of an insurer

c.

Accurate claims reserving helps reduce government regulations

d.

Accurate claims reserving increases the salary of company management

Posted under IC 14 Regulations of Insurance Business

Answer: (b).Accurate claims reserving is essential for the continuing profitability of an insurer Explanation:Accurate claims reserving is critical for the continuing profitability of an insurer, ensuring its financial stability and ability to meet future claim obligations.

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