Question

Write a well written response.

1. What are the top factors in determining ROE of the insurance industry?
2. What is the Covid lockdown reprecussion referred to as exposure destruction?
3. what is Return on Equity (ROE)?
4. In the last 50 years, when has the insurance industry performed best as measured by ROE, under a Republican or Democratic Administration?
5. Why did the highest ROE in this period occur under Jimmy Carter's presidency?

Answer 1

Embedded value is a measurement of the value of a life insurance company.value of the profitability of the business to be measured and written for a given period. Margin to be achieved.persistency ratio along with the solvency ratio helps in determination of ROE of insurance industry.
Covid lockdown is stated as world's largest psychological experiment.this resulted in secondary epidemic of the burnouts and the various stress related absenteeism. The trauma of covid-19 has caused invisible psychological wound. The quarantine has various effects of stress low mood anxiety and anger along with emotional exhaustion depression and symptoms of posttraumatic stress.
Insurance industry refers to A high complex businesswhich involves number of process to the existing process of the administration also prices of new business as well as renew of policies.