Life insurers have been forced by deregulation and the appearance of new competitors to offer market-sensitive rates of return to customers on most of their services, which has reduced profits and driven out smaller and less-efficient firms.

Question

Quizplus · Accepted Answer

Deregulation and increased competition have indeed pressured life insurers to offer more attractive, market-sensitive rates to retain and attract customers. This shift often results in reduced profit margins and can lead to smaller or less-efficient firms exiting the market, unable to compete with larger entities that can afford to offer more competitive rates.

Life Insurers Have Been Forced by Deregulation and the Appearance