Hi, I got some questions
1v) In the answer: It could use its own database to target the existing customers. The whole of life assurance product information could be used effectively. It should have more information from its annuitant policyholders that would be beneficial on postcodes etc.
[I'm not sure why whole life assurance has more information compared to annuity products? Is it because annuities are cheap, so the company will not collect too much detailed information from p/h? In my opinion, p/h information is very important for pricing.]
2(i) In the answer: The government could make it compulsory to travel by train, but performance may get worse meaning that delays could get worse and then overall refunds increase
[How can this happen? I'm confused about what "compulsory to travel by train" means here. Does this mean everyone must travel by train? Then what's the point of introducing a new traffic charge? And how can the government control the willingness of citizens to use what transport they want?]
2(vi) Advantage of using discounted cashflow method: There will be no market value so may be no other option
[Does this mean the market currently don't have such business so there's "no market value"?]
1v) In the answer: It could use its own database to target the existing customers. The whole of life assurance product information could be used effectively. It should have more information from its annuitant policyholders that would be beneficial on postcodes etc.
[I'm not sure why whole life assurance has more information compared to annuity products? Is it because annuities are cheap, so the company will not collect too much detailed information from p/h? In my opinion, p/h information is very important for pricing.]
2(i) In the answer: The government could make it compulsory to travel by train, but performance may get worse meaning that delays could get worse and then overall refunds increase
[How can this happen? I'm confused about what "compulsory to travel by train" means here. Does this mean everyone must travel by train? Then what's the point of introducing a new traffic charge? And how can the government control the willingness of citizens to use what transport they want?]
2(vi) Advantage of using discounted cashflow method: There will be no market value so may be no other option
[Does this mean the market currently don't have such business so there's "no market value"?]