Chapter 20 - Product Design

Question 1

In designing or reviewing any product, the following factors need to be considered: (13)

Answer 1

F inancing
O onerousness of guarantees
R egulation and reinurance
C ompetitiveness
E xtent of cross subsidies
S ensitivity of profit

C onsistency with other products
R isk characteristics
A dmin capabilities & other expertise
M arketability and sales channels
P rofitability

M eeting customer’s needs
S ustainability of investment options