Alicia currently offers 10- and 20-year term life products with face amounts up to $50 million. It has the
Alicia currently offers 10- and 20-year term life products with face amounts up to $50 million.
It has the second largest share of annual sales volume for the 10- and 20-year U.S. term life insurance market.
Recent mortality experience has been higher than expected.
Alicia reinsures all policies that have a face amount in excess of $5 million with a U.S.-based reinsurer.
Alicia mostly invests in high-yield U.S. corporate bonds.
Over the past several years, management and staff turnover has been low.
Alicia has followed a consistent corporate strategy for several years.
External auditors and regulators have not found any major issues with the company's management or processes.
Alicia 's systems use state-of-the-art technology.
Please classify each of the above using the following risk categories and provide a simple explanation:
Market and economic risk
Interest rate risk
Foreign exchange risk
Non-life insurance risk