One Reason for the Recent Decline in the Expense Ratio

question 69

True/False

One reason for the recent decline in the expense ratio for PC insurers is an increased dependence on independent brokers to sell and distribute insurance policies.

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Definitions:

Assembly Line

A process in manufacturing where parts are sequentially incorporated into a product to efficiently complete it.

Multifactor Productivity

A measure of the efficiency of all inputs used in the production process, including labor, capital, and materials.

Quality Complaints

Feedback from customers or users indicating dissatisfaction with a product's or service's quality, which can inform improvements.

Service-Producing Sector

A segment of the economy focused on the production of intangible goods, such as healthcare, education, and financial services.