Question

Why is infrastructure considered a major input for expense modeling?

a.

It determines the persistency assumption

b.

It helps in estimating the total expenses incurred in the future

c.

It influences the choice of distribution channels

d.

It has no impact on expense assumptions

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).It helps in estimating the total expenses incurred in the future Explanation:Infrastructure is considered a major input for expense modeling because it helps in estimating the total expenses that will be incurred in the future.

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