Financially Sustainable

wilsonchan18wilsonchan18
in IBC.Flood

Hi,

Can someone please share what this mean? The wiki said that it is about Reduce Systematic Loss to Support Sustainability.
Why only charging Risk Based Premium can support Financial Sustainability?

Thanks and Warm Regards,
Wilson

Comments

  • Staff-T1Staff-T1

    If we are not charging the risk based premium, that would imply we are charging less than the expected losses + expenses for an associated risk. In the long run, this is not financially sustainable and the plan will eventually go bankrupt

  • wilsonchan18wilsonchan18

    Thanks, now I am clear :smile:

Sign In or Register to comment.