Chapter 23

Question 1

What needs to be considered when launching a new product?

Answer 1

• Regulatory requirements
• Capital requirements.
• Disclosure requirements to customers. New line competitiveness and competitors practise. This includes the price, product features and sales distribution.
• Cultural trends
• Profit criterion and profitability.
• Target market and customer needs.
• Benefit and form of benefit.
• Options and guarantees and the financial requirement.
• Benefits on discontinuance.
• Capital requirements and the size of capital.
• Consistency with other products in the designing and pricing
• Marketability and competitive edge and complexity.
• Key risks.
• Product terms and conditions.
• Administration systems.
• Financing method.
• Charges versus expenses
• Extent of cross subsidies.
• Premium or contribution pattern
• Capital requirements.

Question 2

What needs to be considered when setting up a new scheme

Answer 2

• Regulatory requirements
• Capital requirements.
• Disclosure requirements to customers. New line competitiveness and competitors practise. This includes the price, product features and sales distribution.
• Cultural trends
• Profit criterion and profitability.
• Target market and customer needs.
• Benefit and form of benefit.
• Options and guarantees and the financial requirement.
• Benefits on discontinuance.
• Capital requirements and the size of capital.
• Consistency with other products in the designing and pricing
• Marketability and competitive edge and complexity.
• Key risks.
• Product terms and conditions.
• Administration systems.
• Financing method.
• Charges versus expenses
• Extent of cross subsidies.
• Premium or contribution pattern
• Capital requirements.

Question 3

When changing features of a product, what do you need to consider?

Answer 3

• Regulatory requirements
• Capital requirements.
• Disclosure requirements to customers. New line competitiveness and competitors practise. This includes the price, product features and sales distribution.
• Cultural trends
• Profit criterion and profitability.
• Target market and customer needs.
• Benefit and form of benefit.
• Options and guarantees and the financial requirement.
• Benefits on discontinuance.
• Capital requirements and the size of capital.
• Consistency with other products in the designing and pricing
• Marketability and competitive edge and complexity.
• Key risks.
• Product terms and conditions.
• Administration systems.
• Financing method.
• Charges versus expenses
• Extent of cross subsidies.
• Premium or contribution pattern
• Capital requirements.