Chapter 1 - Insurance Companies Flashcards
1
Q
What are the main factors which impact investment Strategy?
A
- Nature
- Term
- Currency
- Uncertainty
- Relative Size of free reserves
2
Q
What is the basic measure of profit in insurance companies?
A
Post tax profit. = Premium - Claims -Expenses + Investment return - tax
3
Q
What is the formula for the underwriting result?
A
Underwriting Result = Earned Premiums -Claims Incurred - Expenses Incurred
