Question

What is the main objective of experience analysis in insurance?

a.

It has no influence on assumptions

b.

It ensures consistency between underwriting and assumptions

c.

It increases the complexity of assumptions

d.

It reduces the need for assumptions

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).It ensures consistency between underwriting and assumptions Explanation:The main objective of experience analysis in insurance is to ensure consistency between underwriting decisions and the assumptions used for pricing, as well as to monitor trends and performance for informed decision-making.

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Q. What is the main objective of experience analysis in insurance?
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