Chapter 4- Insurance Cycle Flashcards
(4 cards)
1
Q
High order service
A
People will travel for it
E.g. Harrods
2
Q
Low order service
A
Low sphere of influence
Corner shops
Competitive
3
Q
Subscription market
A
Number of insurers can take share of same risk depending on capacity
No price control
4
Q
Cycle
A
Losses=market leavers
Low competition= hard market
Insurers see opportunity to enter market
Competition increases = slow market, low premium
