Question

How do withdrawal rates impact profits in insurance contracts?

a.

They have no impact on profits

b.

They always increase profits

c.

They can either positively or negatively affect profits

d.

They only affect asset shares

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).They can either positively or negatively affect profits Explanation:Withdrawal rates can either positively or negatively impact profits in insurance contracts, depending on factors such as the asset share vs. surrender value at the time of withdrawal and the duration of the withdrawal.

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Q. How do withdrawal rates impact profits in insurance contracts?
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