Question

What are some advantages of the cash flow method in insurance pricing?

a.

It allows for easy incorporation of assumptions that vary over time

b.

It provides a simple and quick method for determining premiums

c.

It does not require consideration of reserves or solvency requirements

d.

It cannot cope with complex charging and benefit structures

Answer: (a).It allows for easy incorporation of assumptions that vary over time Explanation:One advantage of the cash flow method in insurance pricing is that it allows for easy incorporation of assumptions that vary over time. This flexibility enables the method to adapt to changing circumstances and future projections.

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Q. What are some advantages of the cash flow method in insurance pricing?

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