Question

What is the long-term benefit of lower commission rates, lower premiums, and higher sales?

a.

Increased profitability for the company

b.

Greater satisfaction for policyholders

c.

Higher remuneration for distributors

d.

Reduced competition in the market

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Increased profitability for the company Explanation:Lower commission rates, lower premiums, and higher sales can lead to increased profitability for the company in the long term by attracting more policyholders and reducing expenses.

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Q. What is the long-term benefit of lower commission rates, lower premiums, and higher sales?
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