CH 20 (Product Design)

Question 1

Process of designing and pricing an insurance product

Answer 1

–Needs
–Distribution channel
(+ Marketing)
–Design
–Launch date
–Product spec
(cross-subsidies + consistencies, guarantees, risk characteristics, admin systems, regulatory compliance)
–Burning costs
–Expense costs
–Profit requirement
–Lapse assumptions
–Profit testing
–Competitor comparison
–Revise and fine tune

Question 2

3 Components of Service in Life Product

Answer 2

• Savings
• Protection
• Administration