Question

Why is it important for insurers to comply with local laws while designing insurance products?

a.

To increase shareholder profits

b.

To minimize policyholder benefits

c.

To avoid legal penalties and ensure regulatory compliance

d.

To reduce policy premiums

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).To avoid legal penalties and ensure regulatory compliance Explanation:Insurers must comply with local laws while designing insurance products to avoid legal penalties and ensure regulatory compliance with insurance legislation in that country.

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Q. Why is it important for insurers to comply with local laws while designing insurance products?
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