Contract Design & Pricing / Financing Flashcards
1
Q
Types of Selection
A
STATIC
Spurious Time Adverse Temporary Initial Class
2
Q
Contract Design Factors
A
AMPLE DIRECT FACTORS
Administration systems Marketability Profitability Level and form of benefits Early leaver benefits
Discretionary benefits Interests and needs of customers Risk appetite of the parties involved Expenses vs charges Competition Terms and conditions of contract
Financing (capital requirements) Accounting implications Consistency with other products Timing of contributions and premiums Options and guaranties Regulatory requirements Subsidies (cross-)
3
Q
Expenses Incurred by a Product Provider
A
RAPID COST
Renewal Expenses Asset Management Profit Initial Administration Design of Contract
Commission
Overheads
Sales / Advertising
Terminal (e.g paying off benefits)
