Q. Why might the rate of return on equities be higher than the risk-free rate of interest?

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Q. How are interest rates typically estimated for long-term insurance contracts?

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Q. Which of the following factors is NOT considered when choosing an interest rate for insurance contracts?

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Q. What is a key consideration regarding interest rates in insurance contracts?

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Q. What is the purpose of making pessimistic and optimistic estimates of investment return in determining interest rates?

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Q. What factor influences the rate of return on equities?

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Q. What determines the rate of interest required by shareholders on their investments?

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Q. How does past experience contribute to the determination of interest rates?

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Q. Which type of insurance product requires a major investment at the outset?

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Q. What type of investments are preferred for without-profit contracts?

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Q. Which type of contracts require higher returns on investments to meet policyholders' expectations?

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Q. How does the nature and term of liabilities impact interest rate assumptions?

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Q. What factor determines the availability of matching investments for insurance contracts?

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Q. In which scenario would it be risky to invest in equities for insurance contracts?

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Q. How does past experience of interest rates affect future interest rate assumptions?

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Q. How do investment expenses impact interest rate assumptions?

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Q. How does taxation on investment income affect interest rate assumptions?

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Q. How does government monetary policy influence interest rates?

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Q. What effect does high inflation have on interest rates?

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Q. How does the level of reserve build-up vary based on the benefits provided by the product?

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