Chapter 4 The insurance cycle Flashcards
1
Q
If supply = demand what do we call it?
A
Market equilibrium
2
Q
If demand is greater than supply what happens to prices?
A
Increase
3
Q
If supply is greater than demand what happens to prices?
A
Fall/decrease
4
Q
Why do insurers enter a market?
A
Because they believe demand exceeds supply
5
Q
If insurers suffer large losses what do they do?
A
Leave the market
6
Q
What influences the market cycle?
A
Legal changes
Political changes
Major events
