Question

How does past experience influence withdrawal rates?

a.

Insurer's past experience has no impact on withdrawal rates

b.

Industry experience reflects general mood of policyholders regarding insurance policies

c.

Past trends have little relevance to future withdrawal rates

d.

Industry experience does not reflect policyholders' attitudes towards insurance policies

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Industry experience reflects general mood of policyholders regarding insurance policies Explanation:Insurer's past experience and industry experience are major factors influencing withdrawal rates, as they reflect the general mood of policyholders regarding insurance policies.

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Q. How does past experience influence withdrawal rates?
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