Question

How can expense risk be controlled in insurance companies?

a.

By avoiding expense analysis

b.

By increasing upfront charges

c.

By outsourcing activities to third-party administrators

d.

By ignoring changes in expenses

Answer: (c).By outsourcing activities to third-party administrators Explanation:Expense risk in insurance companies can be controlled by outsourcing activities to third-party administrators with long-term contracts, thereby transferring the expense risk to them.

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Q. How can expense risk be controlled in insurance companies?

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