Saturday, October 3, 2015

Guiding Principles of Determining amount of loading

Adequacy
The total loading from all policies must be sufficient to cover the company's total operating expenses. It should also provide a margin of safety and finally it should contribute to the profits or surplus of the company.

Equity
Expenses and safety margins etc   should be equitably apportioned among various kinds of policies, depending on type of plan, age and  term etc

Competitiveness 
The resulting gross premiums should enable the company to improve its competitive position


No comments:

Post a Comment

ad code