An insurance company that faces fierce competition from other providers is considering a strategy to sell more policies by simplifying its portfolio and becoming the expert in flood insurance for the state The company managers reason, Everyone buys flood insurance in this state, so lets focus our e...

This strategy is risky for the insurance comp ...

An insurance company that faces fierce competition from other providers is considering a strategy to sell more

Question:

An insurance company that faces fierce competition from other providers is considering a strategy to sell more policies by simplifying its and becoming the expert in flood insurance for the state. The company managers reason, “Everyone buys flood insurance in this state, so let’s focus our efforts on becoming the preferred provider.” Evaluate this strategy.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...