Gce Model Questions Vol1 2024 Commerce Question 10
Practice essay / theory question 10 from the 2024 Gce Model Questions Vol1 Commerce examination. This question covers Insurance, Risk Management, Premium Setting, Law of Large Numbers .
SecureLife Insurance offers a motor insurance policy to private vehicle owners. The following data relate to a homogeneous portfolio of 10,000 policies for the upcoming year (all figures in Nigerian Naira): - Current average premium charged per policy: ₦25,000 - Expected claim frequency per policy: 0.04 claims per year - Average cost per claim: ₦150,000 - Operating expenses are estimated at 20 % of total premium income. - The insurer wishes to include a profit loading equal to 10 % of the expected total claim cost. Using the information above, answer the questions that follow.
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This is Gce Model Questions Vol1 2024 Commerce Question 10. It is one of the essay questions from the 2024 Gce Model Questions Vol1 Commerce examination.
The question covers Insurance, Risk Management, Premium Setting, Law of Large Numbers .
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