Question

How does the extent of regulation impact insurance companies' freedom to innovate?

a.

More regulation allows for greater freedom to innovate

b.

Less regulation allows for greater freedom to innovate

c.

Regulation has no impact on innovation

d.

Regulation always restricts innovation

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Less regulation allows for greater freedom to innovate Explanation:Less regulation generally allows for greater freedom for insurance companies to innovate in product design, as there are fewer restrictions and requirements imposed by regulators.

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Q. How does the extent of regulation impact insurance companies' freedom to innovate?
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