Hi, The solution to point 7 talks about accelerating the earnings pattern, but I don't see how this could be done. Isn't the underlying risk exposure fixed and well outside the underwriter's sphere of influence. The only thing I can think of is speeding up claims processing, but would this be able to make a significant difference, given that they should be trying to be as efficient as they can be anyway.
Yes, you're right - speeding up the earnings pattern here would be very difficult in practice, and probably wouldn't make much difference overall. If they made the policies annual then that would speed it up, but it may not be possible anyway.
