what factor contribute to moral profit and loss within an insurance company biz?

Answers: An insurance company's profit or loss is dependent upon two main factors.

First is rate satisfactoriness. That means you have to know how to write insurance at a rate that is high adequate to cover administration and payment of losses. Rate satisfactoriness may sometimes be difficult to achieve due to competitors in the bazaar driving down average premiums on issued policies. Rate adequacy may also be hampered by State regulatory bodies limiting necessary rate increases.

The second focal factor is risk selection. If you are an auto insurance company you need to be capable of select the best drivers. Those would be drivers who have few or no tickets or accidents. A relatively strange risk selection factor is credit scoring where you determine the lowest risk drivers by the aspect of their credit standing.

If you are able to charge a fair premium base upon the risk assumed your insurance company will be profitable. Source(s): 35 years insurance industry experience
1. GOOD UNDERWRITING
2. good retention
3. low employee turnover
4. using "Best's Practices"

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