Podcast
Questions and Answers
What is the main purpose of regulation in the insurance market?
What is the main purpose of regulation in the insurance market?
- To reduce the number of insurers
- To increase consumer confidence (correct)
- To limit product innovation
- To maximize profits for insurance companies
Which of the following is a regulatory restriction on insurance premium rates?
Which of the following is a regulatory restriction on insurance premium rates?
- Freedom to use any rating factor for premiums
- Use of gender in premium calculations (correct)
- Unrestricted variation in premium charges
- No restriction on channels for sales
What might be a potential indirect cost of regulation in the insurance market?
What might be a potential indirect cost of regulation in the insurance market?
- More insurers entering the market
- Increased consumer confidence
- Less product innovation (correct)
- Higher profitability for insurers
What type of underwriting practice might be prohibited by regulations?
What type of underwriting practice might be prohibited by regulations?
What area of insurance operations might regulations require disclosure and mitigation of climate risks?
What area of insurance operations might regulations require disclosure and mitigation of climate risks?
Why does regulation aim to protect consumers in the insurance market?
Why does regulation aim to protect consumers in the insurance market?
What is a potential indirect cost of regulation in the insurance market?
What is a potential indirect cost of regulation in the insurance market?
Which of the following is a regulatory restriction on insurance premium rates?
Which of the following is a regulatory restriction on insurance premium rates?
What might regulations require disclosure and mitigation of in the area of insurance operations?
What might regulations require disclosure and mitigation of in the area of insurance operations?
What type of underwriting practice might regulations prohibit?
What type of underwriting practice might regulations prohibit?
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