Question

What does withdrawal risk refer to in insurance?

a.

The risk of policyholders withdrawing their policies due to dissatisfaction

b.

The risk of actual experience differing from assumed experience in pricing

c.

The risk of policyholders defaulting on premium payments

d.

The risk of policyholders experiencing financial hardship

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).The risk of actual experience differing from assumed experience in pricing Explanation:Withdrawal risk in insurance refers to the risk of actual experience differing from assumed experience in pricing.

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Q. What does withdrawal risk refer to in insurance?
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