(a) Outline the benefits to Kenya in social and economic terms, of an active and well developed…

(a) Outline the benefits to Kenya in social and economic terms, of an active and well developed insurance industry.[8 Marks ]

(b) In most insurance markets, Insurance companies transact both life insurance and life annuity business.

Give the difference between the two lines of business and explain why these insurers generally require evidence of health from a person applying for life insurance but not

for an annuity. [4 Marks ]

(c) You are the Risk Officer for a rapidly expanding Kenyan-based insurance company writing a full range of lines of business.

Draft a breify report explaining why frequency and severity of a risk are the key characteristics that influence the technigue or method you employ in managing risks

exposed to your company.[8 Marks ]

Question Five: [20 Marks ]

a)Explain with tangible evidences why a government would consider supervision of the insurance industry imperative, shouldn’t this supervisory role be delegated to the industry’s self regulating bodies like in the case of Kenya, the association of Kenya