CAS Exam 5 Fall 2018, Question 8

Study guide: Exam 5

Given the following information:

Part a (0.5 points)

List two likely consequences of the company implementing the indicated rate.

Part b (0.5 points)

Briefly describe two factors that affect an insured's propensity to renew.

Part c (0.75 points)

The company has decided to not implement the indicated rate. List three non-pricing solutions the company could implement to ensure profitability does not deteriorate.

Part d (0.5 points)

Identify an issue with comparing one company's premium to another and briefly propose a solution to this issue.

Answer this question and see the worked solution

Concepts tested

• Considerations for Implementing Rates
• Ratemaking Constraints
• Underwriting Changes
• Mix of Business
• Non-Pricing Solutions

More questions from this set

• CAS Exam 5 Fall 2018, Question 7
• CAS Exam 5 Fall 2018, Question 9