Quote:
| Originally Posted by Unregistered Admin,
Put a thread out to insurance employees and ask them how they calculate their premiums for the year.
In the end the same system is used for insurance and with Enterprise's CDW. A profit is always figured into the price in the overall grand scheme of things. If they didn't do this then from a business perspective I would think that it would be kind of foolish.
Would you be happy purchasing stock for a risky company that continually lost money and it's stock price went down? Of course not, you want to be rewarded with a rising stock price to compensate for the risk taken. |
I think you give ERAC WAY too much credit here. There is NO underwriting mechanism or actuaries that figure out how much should be charged for CDW. It is up to the Group to determine, if the price is not mandated by the State. Hell, as a L3 I used to change the price all the time to see what impact it had on sales % by employees and total revenue.
Honestly, there is little, if any "science" to it.