_________________ in the insurance industry prevents premiums from being much higher than the___________ level in the long term.

Question

Quizplus · Accepted Answer

Competition in the insurance industry ensures that premiums do not significantly exceed the actuarially fair level over the long term. This is because competition among insurers drives them to offer premiums that are close to the expected cost of claims (actuarially fair) to attract customers, preventing any single insurer from charging excessively high premiums.

_________________ in the Insurance Industry Prevents Premiums from Being Much