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As in other markets, the logic of a price-sales function applies in the insurance market, which determines the relationship between supply and demand. The price-sales function of an insurer indicates which quantities of insurance coverage x can be sold at alternative price demands p in new business and—with some restrictions, because other aspects also play a role—can be maintained in the portfolio. Since premium revenues (= sales) is the product of sales quantities and prices, a revenue function can also be represented in addition to the price-sales function.

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Price and Premium Policy as a Marketing Tool of the Insurance Company

  • 章节

  • 发表日期：

    2025年

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  • Thomas Köhne

摘要

As in other markets, the logic of a price-sales function applies in the insurance market, which determines the relationship between supply and demand. The price-sales function of an insurer indicates which quantities of insurance coverage x can be sold at alternative price demands p in new business and—with some restrictions, because other aspects also play a role—can be maintained in the portfolio. Since premium revenues (= sales) is the product of sales quantities and prices, a revenue function can also be represented in addition to the price-sales function.