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The Correct Calculation of an Insurance Premium Relies Upon the Determination

question 44

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The correct calculation of an insurance premium relies upon the determination of the expected monetary value of claims (their probability multiplied by their expected costs)multiplied by the number of policyholders.Over time,the law of averages-arithmetic averages-allows an insurance company to be profitable.


Definitions:

Service Characteristic

Features that distinguish services from goods, including intangibility, inseparability, variability, and perishability.

Responsiveness

The speed and quality of a response to customer inquiries, complaints, or needs, reflecting a company's customer service level.

Service Quality

The assessment of how well a delivered service matches customer expectations, often used as a key performance metric in service industries.

Voice-of-customer

A term used to describe the process of capturing customers' preferences, experiences, needs, and expectations.

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