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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. How do investment expenses impact interest rate assumptions?

View solution

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

View solution

Q. How does government monetary policy influence interest rates?

View solution

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

View solution

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

View solution

Q. Why is it critical to choose an appropriate investment return for products with investment guarantees?

View solution

Q. How does the extent of investment guarantees affect asset selection?

View solution