Question
a.
Physically real cashflow involves only tangible monetary transactions, while notional cashflow involves intangible exchanges.
b.
Physically real cashflow includes premiums and investment income, while notional cashflow includes payments to policyholders, commission to agents, and expenses.
c.
Physically real cashflow represents actual monetary exchanges, while notional cashflow represents hypothetical or accounting transactions.
d.
Physically real cashflow encompasses expenses and taxes, while notional cashflow encompasses premiums and investment income.
Posted under IC 92 Actuarial Aspects of Product Development
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Q. What is the distinction between physically real cashflow and notional cashflow in insurance pricing?
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