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A comment on Could a Bank Deny Your Loan Based on Your Facebook Friends?. Parent comment

Re:Could a Bank Deny Your Loan Based on Your Facebook Friends? by robrenaud on Friday October 02, 2015 @01:37PM (#10319996)
They had better be paying more than x% * sum assured, or else the insurance company is going out of business.
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Re:Could a Bank Deny Your Loan Based on Your Facebook Friends? by differentView on Friday October 02, 2015 @01:49PM (#10320087)
They make money from the float. http://www.wikinvest.com/wiki/Float
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Re:Could a Bank Deny Your Loan Based on Your Facebook Friends? by riskneural on Friday October 02, 2015 @02:20PM (#10320284)
The price is x% of the sum assured discounted at the risk neutral rates, plus admin expenses, plus customer acquisition cost, plus a target percentage of the economic capital (because their is a wee bit of risk), plus adjustments based on your demographic's price sensitivity profile, combined with adjustments based on the market cycle. Of course, you should also factor lapse rates in. Then maybe factor in whether this is a good beginner product for new customers.
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