a) A life insurance company believes that it has identified a gap in the market and that it can sell

a) A life insurance company believes that it has identified a gap in the market and that it can sell profitable term and critical illness insurance to financially unsophisticated investors who have below average disposable income.

(i.) Describe the features of the target market. [2 Marks]

(ii.)Discuss the different distribution channels that might be available to the company to market these products to this type of client, and identify the channels that would be the most appropriate. [6 Marks]

b) Outline THREE principles of insurance stating how they may be applied to life and general insurance. [6 Marks]

c) There is a negative correlation between the growth of insurance industry and the levels of education in Kenya. Discuss. [6 Marks]