Chapter 9: Section 2.4

[jensen]

Hi

On page 14 (2011) in the example box, the second sentence says that the claims are more frequent if the broker has a facility to filter out fraudulent claims.

Is this correct?

 

[mattt78]

Hi

On page 14 (2011) in the example box, the second sentence says that the claims are more frequent if the broker has a facility to filter out fraudulent claims.

Is this correct?

I think its just a very badly written second sentence.

The "they" being referred to in the second sentence are the direct sales, not the broker sales. So it's saying that if brokers filter out some claims, broker claims will be less frequent, so direct sales claims will be relatively more frequent.

That's how I read it anyway, and it makes more sense that way round.