J
jimmytee
Member
Hi all,
refer to Section 4: Analysis of the methods - the retrospective method
- For without profits contracts it has a number of disadvantages including:
(i) it does not say anything about the profit the company would have made if the contract were not surrendered. hence it is not easy to ensure equity either with continuing policyholders or with any shareholders.
Anyone here able to explain the point above? Why would company need to consider the situation where contract were not surrendered and hence the profit made from that?
Appreciate if you guys can help this out. thanks heaps!
refer to Section 4: Analysis of the methods - the retrospective method
- For without profits contracts it has a number of disadvantages including:
(i) it does not say anything about the profit the company would have made if the contract were not surrendered. hence it is not easy to ensure equity either with continuing policyholders or with any shareholders.
Anyone here able to explain the point above? Why would company need to consider the situation where contract were not surrendered and hence the profit made from that?
Appreciate if you guys can help this out. thanks heaps!