Important Points for IC 26 - Life Insurance Finance Exam
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Financial concepts are used by insurance companies to get attractive returns for the policy holders in the face of tough competition.
Due to introduction of foreign companies in the industry, there has been increase in competition.
Solvency and liquidity are two different things. Solvency means the ability of an organisation to cover its liabilities with the use of the organisations assets. Liquidity refers to the cash flow in an organisation.
Risk management refers to minimising the likely damages.
ALM is used for sound decision making and taking actions with respect to assets and liabilities.
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