3. South African Specific Products Flashcards
1
Q
Product design factors
A
SAMPLE DIRECT FACTORS
Sensitivity of profit (to assumptions)
Administration systems
Marketability
Profitability
Level and form of benefits
Early lever benefits
Discretionary benefits
Interests of customers
Risk appetite/ risk characteristics
Expense vs charges
Competition
Terms and conditions
Financing requirements
Accounting standards
Consistency with other products
Timing of premiums and costs
Options and guarantees (onerousness)
Regulation/ tax
Subsidies (extent of)
2
Q
Needs met by CI product
A
CII PROM
- change of lifestyle fund (change job)
- income while insured not working (annuity)
- improve quality of life (e.g. holiday)
- partner of business use to fund partner stake
- repayment of loan/ mortgage
- other: recuperation, medical aid, specialist equipment
- medical costs (surgery and treatment)
3
Q
South African individual risk products (7)
A
- mortality benefits
- income protection
- permanent disability
- credit life
- keyman cover
- critical illness
- funeral insurance
