chapter 1

Question 1

what are the three main types of insurance company

Answer 1

composite, life and general

Question 2

why are affinity groups an attractive target for insurers

Answer 2

they offer insurers the opportunity to reach a large group of potential clients through existing communication channels

targeted products can be developed and sold with lower acquisition costs than in the open market

Question 3

what types of business will mutual companies usually transact

Answer 3

life or general business

majority operate in the long term (life) sector

Question 4

what do global companies focus on

Answer 4

strong central headquarters

seeing the whole world as a single potential market

Question 5

how do multinational companies operate

Answer 5

several different countries, but may still have a home base

Question 6

what do market disruptors do

Answer 6

deliver substantial innovation in the products and experiences they offer

break down barriers to entry that previously protected markets and overcome the defenses of existing suppliers