Past Qs

Question 1

Factors to be considered while launching a product

Answer 1

1.Demand for the product (customer, dist channel)
2. Profitability:
a) Profit Margin
b) Shareholder required rate of return
c) Return on capital vs other uses
d) Profit per policy and volume. Low volume - unable to recover cost, high volume -
insufficient capital
3. Level of underwriting
4. Timing of launch : state of economy
5. Regulatory requirements

Question 2

Steps after experience investigation

Answer 2

Check data:
1. Data was complete.
2. All policies counted.
3. Exits types considered.
4. Spot check on the data.
5. Reconciliation of data.