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

Q. How can expected future rates of inflation be estimated?

View solution

Q. How is inflation expressed when setting expense assumptions?

View solution

Q. What does expense analysis primarily involve?

View solution

Q. Why is it important to consider the time period involved in expense investigation?

View solution

Q. How are total expenses of the past typically categorized?

View solution

Q. What are initial expenses in expense analysis?

View solution

Q. Why is it necessary to adjust expense figures for inflation when looking over several years?

View solution

Q. How are initial expenses, renewal expenses, and termination expenses further split according to?

View solution