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ST2 - Booklet 1.txt
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2 managements on policy retention
1. Distribution channel management
2. Customer relationship management
Talk about distribution channel management
1.
Commission
/
other remuneration
2.
Surrender penalty
3. Suitable management strategy to avoid any identified
systematic
lapse / surrender
trend
continuing
4. Monitor
# of quotations
vs. business acquired to control acquisition costs.
Talk about customer relationship management
1. Meet p/h
needs
2. Maintain / improve
admin
quality
Talk about expense control
1. contain expenses + commissions into prem / charge rate policy
loadings
2. regularly
monitoring
actual expenses
with the policy loadings
3. compare
expense ratios
with competitors'
4. control expenses by
reducing current cost base
to be within policy loadings
5. regularly
monitoring commissions
by a) product line b) distribution channel c) specific sales person / broker
4 risks to the insured
1.
insufficient benefit
(a) inflation (b) investment performance.
NP - (a) not ok; (b) N/A. WP - (a) & (b) ok becoz of future bonuses. UL - (a) OK (b) Not ok.
2.
insurer insolvency
NP - Not ok. WP - Ok becoz of bonuses. UL - Not ok.
3. cannot
maintain premium
NP & WP - Not ok. UL - Ok.
4.
inflexible product
(a) cannot keep pace with disposable income (b) non-changeable benefits
NP & WP - Not ok. UL - Ok.
Author
dbsalan
ID
28738
Card Set
ST2 - Booklet 1.txt
Description
ST2 Actuarial Exam
Updated
2010-08-02T16:56:44Z
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