The practice of adapting insurance prices to interest rates by lowering premiums when interest rates rise and raising premiums when interest rates decline is called

Question

Quizplus · Accepted Answer

Cash flow underwriting is the practice where insurers adjust their premium rates based on the current interest rate environment, lowering premiums when interest rates are high to attract more cash (which can then be invested at these higher rates) and raising premiums when interest rates are low.

The Practice of Adapting Insurance Prices to Interest Rates by Lowering