F
fireranger
Member
Hi guys
I really need your help in this question. PLEASE!!!
An insurance company is considering launching a new product for graduates
taking actuarial exams that pays out a fixed sum when the student
fails an exam.
(a) Describe the problems of selection and moral hazard with this
product and the measures that the company could take to reduce
them.
(b) List the main risk factors for this product.
(c) Give the rating factors that you would recommend the company
uses and justify them by relating them to the risk factors you
listed.
I really need your help in this question. PLEASE!!!
An insurance company is considering launching a new product for graduates
taking actuarial exams that pays out a fixed sum when the student
fails an exam.
(a) Describe the problems of selection and moral hazard with this
product and the measures that the company could take to reduce
them.
(b) List the main risk factors for this product.
(c) Give the rating factors that you would recommend the company
uses and justify them by relating them to the risk factors you
listed.