Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points
Page 21 Of 52
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Pricing is critical to the success of any insurance venture. Underwriting profits should be a consistent target.
Basic pricing - premiums in : claims out - leads to pure premium
Pure premium needs adjustment for all the working expenses and normal outgoing of any insurer
Technical rate and book rate are critical for long term underwriting profit
Operational premium issues include rating, catastrophe loading and commercial discounting.
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