1.2 Insurer Goals Flashcards
(3 cards)
1
Q
What are an insurers main goals?
A
1) Earn a profit
2) Meet customer needs
3) Comply with legal requirements
4) Diversify risks
5) Fulfill their duty to society
2
Q
What is a proprietary insurers approach to earning a profit?
A
Must earn a profit for the shareholders, otherwise they won’t be able to raise capital
3
Q
What is a cooperative insurers approach to earning a profit?
A
Profits are contibuted to surplus or returned to policy holders as dividends
