Question

What impact does the size of population eligible to buy have on insurance sales?

a.

Restricting the age range increases sales volume

b.

Expanding the age range limits the volume of sales

c.

Limiting the population eligible to buy limits sales volume

d.

All of the above

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Limiting the population eligible to buy limits sales volume Explanation:The size of the population eligible to buy insurance can impact sales volume. If the eligibility criteria are restricted, such as limiting the age range for entry or maturity, it can limit the potential customer base and therefore sales volume.

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Q. What impact does the size of population eligible to buy have on insurance sales?
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