State the main conditions for: (i.) A risk transfer to take place. [1 Mark ] (ii.) A risk to be…

State the main conditions for:

	(i.) A risk transfer to take place.	[1 Mark ]
	(ii.) A risk to be insurable.	[3 Marks]
b)	(i.) Explain what is meant by moral hazard.	[1 Mark ]

(ii.) Describe the various moral hazards associated with household buildings and contents insurance. [3 Marks ]

c) Outline FOUR major challenges hindering quality excellence of insurance industry in

Kenya. [4 Marks ]

d) An insurance company is subject to state regulation. The regulator is concerned that the company’s solvency capital has deteriorated and has decided to intervene in order to protect the interests of policyholders.

(i.) List four actions that the regulator can take. [3 Marks]

The regulator is developing a model to project the insurer’s solvency position.

(ii.) State the main aspects of the company’s insurance business that need to be modelled. [3 Marks]

e) A new medium sized company in a developing country wishes to design a retirement benefit scheme for its permanent and pensionable employees. The company has approached the Pension Administrator of a local insurance company to help them design an overall benefits package for employees’ long term retirement benefits

(i.) Outline the three main options/types of occupational scheme available for this new company. [3 Marks]

(ii.)List the roles that the government can play in retirement provision.[3 Marks]

f) You are a consultant who has been advising the Project Manager of your County disaster management department. You have been contracted to advice on the feasibility of introducing an effective risk management strategy.

Outline the key steps you would consider in your risk management process advice.