Contract Design Flashcards
1
Q
Why do we want to launch a product?
A
Enable us to increase our gross written premium income
Overheads may be spread over a larger number of policies
Meet demands from brokers/advisors/policyholders
Differentiate its offering from other insurers
Increase diversification and reduce concentration risk
2
Q
All contract design factors
A
Administration systems
Marketability
Profitability
Level and form of benefits
Early leavers benefits
Discretionary benefits
Interests and needs of customers
Risk appetite
Expenses vs charges
Competition
Terms and conditions
Financing requirements
Accounting implications
Consistency with other products
Timing of contribution
Options and guarantees
Regulatory requirements
Subsidies
