Q. How does the extent of expense risk impact profit?

View solution

Q. What technique is used for studying new product launches, new distribution channels, and new life insurance companies?

View solution

Q. How does a company's recent experience contribute to determining expense assumptions?

View solution

Q. Why is infrastructure considered a major input for expense modeling?

View solution

Q. How does insurance legislation affect expense estimation?

View solution

Q. In what way can consultants support expense estimation?

View solution

Q. How can data from reinsurers be beneficial for expense assumption?

View solution

Q. Why is it important for expense assumptions to be consistent with competitors' rates?

View solution

Q. How does industry data contribute to expense assumptions?

View solution

Q. Why is expense inflation considered a separate assumption?

View solution

Q. How do the terms "fixed" and "flat" relate to expense assumptions?

View solution

Q. What is the primary purpose of ensuring consistency with industry-wide practices in expense assumptions?

View solution

Q. What is expense inflation?

View solution

Q. How is inflation primarily affected in insurance companies?

View solution

Q. What factors contribute to expense inflation?

View solution

Q. How does expense inflation impact initial expenses?

View solution

Q. Why is it necessary to consider future expense assumptions in pricing contracts?

View solution

Q. Why is it important to estimate the time period for which a new product will be sold in the market?

View solution

Q. How is expense inflation typically incorporated for renewal expenses?

View solution

Q. What must the inflation assumption be consistent with?

View solution