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They had better be paying more than x% * sum assured, or else the insurance company is going out of business.
by robrenaud 11y ago
They had better be paying more than x% * sum assured, or else the insurance company is going out of business.
- differentView 11y agoThey make money from the float. http://www.wikinvest.com/wiki/Float http://www.wikinvest.com/wiki/Float
- riskneural 11y agoThe price is x% of the sum assured discounted at the risk neutral rates, plus admin expenses, plus customer acquisition cost, plus a target percentage of the economic capital (because their is a wee bit of risk), plus adjustments based on your demographic's price sensitivity profile, combined with adjustments based on the market cycle. Of course, you should also factor lapse rates in. Then maybe factor in whether this is a good beginner product for new customers.