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| Topic: |
Business
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| Number of pages / Number of words: |
23 / 6200 |
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If an insurer’s pricing is based on assumptions that prove inadequate, it may not be able to meet its obligations to policy owners.
C-3 risk(interest-rate risk) springs from the impact of fluctuating interest and inflation rates causing the insurer to lose money on its products. If the impact of fluctuating rates is different on assets than on liabilities, the values of assets and liabilities will change by different amounts, and could expose the insurer to insolvency...
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If the impact of fluctuating rates is different on assets than on liabilities, the values of assets and liabilities will change by different amounts, and could expose the insurer to insolvency.
C-4 risks( general management risks), stem from the insurer's ineffective general business practices. These risks include tax and regulatory changes, poor training of employees and sales agents, and fraud by managers or other employees...
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