Risk Margins Are Determined on the Basis Of

question 53

Multiple Choice

Risk margins are determined on the basis of:

• A) The robustness of valuation models used.
• B) Past experience of the insurer and the industry.
• C) The reliability and volume of data.
• D) The characteristics of the classes of business underwritten.
• E) All of the given answers.

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Definitions:

Management by Objectives

A management strategy in which employees set goals that are aligned with organizational objectives, fostering participation and commitment.

Organization-wide

Pertaining to practices, policies, and procedures that are implemented across the entire organization, affecting all levels and departments.

Goal Setting

The practice of establishing clear, specific, and achievable objectives to guide an individual's or organization's efforts.

Organization Development

A discipline concerned with growing the knowledge and efficacy of personnel to drive more effective changes and improvements in organizational settings.