Explain two benefits and two challenges for rpr

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You are the Underwriting Manager for RPR Ltd, a large personal lines motor insurer.

During the past year, there has been minimal new business underwritten on RPR Ltd's motor account. In addition, there are a significant number of long-standing policyholders moving their business to competitors.

The majority of RPR Ltd's business is underwritten on its standard policy wording. In response to competition, RPR Ltd is considering expanding its policy wording to include the following additional covers:

  • Legal expenses.
  • Breakdown.
  • Guaranteed hire car.

(a) Explain two benefits and two challenges for RPR Ltd in adding these additional covers, to its standard policy wording. (12)

(b) Explain, with justification, two underwriting actions that could be taken to effectively manage the challenges, which you have explained in (a) above.

Reference no: EM133275897

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