Life insurance products Flashcards
1
Q
Things to consider when designing contract
A
Premiums
Reinsurance
Tax
Expenses (Simple admin)
Meeting customers’ needs
Competition
Marketability
Types of benefits
Financing requirements
2
Q
Why Capital strength is needed
A
- Give investment freedom – the more free assets, the greater the ability to mismatch in pursuit of higher returns
- Demonstrate financial strength – Will help in getting new business such as brokers, customers, creditors
- Cover unexpected events – unfavourable claim experience, miss-selling fine
- Opportunities – mergers and acquisitions
- Development expenses – product development, advertising, marketing costs
- Cover guarantees
3
Q
A
3
Q
A
