An Insurance Company Published Their Methodology for Assessing Customer Risk

question 21

Short Answer

An insurance company published their methodology for assessing customer risk based on several variables. One of these variables was a Tier category developed internally by the company. The classification method for Tier was not included in the article published. What factor would be critical if a researcher were to attempt replicating the risk assessment with data from a different insurance company?

Analyze how changes in government budget positions affect interest rates and investments.

Identify how changes in consumer behavior and economic policies influence saving and investment decisions.

Distinguish between movements along and shifts of the supply and demand curves for loanable funds.

Calculate real interest rates from nominal interest rates and inflation.

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Definitions:

Payroll, Benefits

The process of compensating employees, including the calculation of wages and distribution of salaries, along with the provision of benefits such as health insurance, pensions, and leave entitlements.

Retirement

The period in someone's life when they choose to permanently leave the workforce behind, often supported by pensions or savings.

Corporate Human Capital

The collective skills, knowledge, and experience possessed by an organization's workforce.

Local Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to the local community or economy.