Insurers desire to earn income in excess of the costs to manage the various types of insurance contracts. Which management objective is being addressed?

Question

Quizplus · Accepted Answer

The management objective being addressed is profitability, which refers to the goal of earning income in excess of the costs associated with managing the insurance contracts. Solvency refers to the ability of the insurer to pay its financial obligations, while liquidity refers to the ability of the insurer to quickly convert assets into cash to meet its obligations. Transparency refers to the ability of the insurer to provide clear and understandable information to its stakeholders.

Insurers Desire to Earn Income in Excess of the Costs