Filter by Categories
Accounting
Banking

Insurance




Variable Fee


A fee that is charged by an insurer for the services it provides to the policyholders. It constitutes the insurer’s share of the underlying items in an insurance contract and the other cash flows needed to fulfill the contract (characteristically, these cash flows do not vary on returns). An insurer is obliged to pay the policyholder an amount equal to the value of the underlying items less the variable fee for the services provided.

Under the variable fee approach (VFA), variable fee is part of the fulfillment cash flows (FCFs), which also includes account value and risk adjustment.



ABC
Insurance revolves around risk reduction or mitigation through transferring the risks of individuals and firms to an insurance company. Insurers take on the risk and ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*