Question

What is the primary consideration for a new insurer in estimating expenses while pricing insurance products?

a.

Future market demand

b.

Current and future expenses of the insurance industry

c.

Estimated profits

d.

Reinsurance costs

Answer: (b).Current and future expenses of the insurance industry Explanation:A new insurer, when pricing insurance products, would primarily consider the current and future expenses of the insurance industry to estimate its own expenses.

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Q. What is the primary consideration for a new insurer in estimating expenses while pricing insurance products?

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