期刊名称：International Journal of Finance and Accounting
印刷版ISSN：2168-4812
电子版ISSN：2168-4820
出版年度：2016
卷号：5
期号：4
页码：202-208
DOI：10.5923/j.ijfa.20160504.05
语种：English
出版社：Scientific & Academic Publishing Co.
摘要：The pricing and profitability of a good insurance product depends greatly on some key factors such as the investment rate, shareholders rate, expense rate, commission rate, surrender and death benefits.Profit testing of “key man” product was run on three insurance companies in Ghana using the modern method of profit testing under the asset share models and the results obtained indicated that an increase in premium was not enough to increase effciency and profit. Instead, the investment rate had to be increased and expense decreased whiles giving shareholders substantial dividend rate. The study revealed that the investment rate has a great effect on profit of the product and also illustrated that it was expedient to spread out the expense over a longer period of time with the first two years having the greater share of the expense followed by a low constant expense rate for the continuing years. The amount paid as dividend should motivate and attract investors while the commission rate should motivate agents to bring more clients on board and at the same time there should be a strong reserve to cater for claim payments while the surrender and death benefits should be well allocated. These factors are nesssary to keep an insurance company to run efficiently, irrespective of the claims that it must has to pay.
