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Disadvantages of deductibles

business acumen
New answer on Aug 05, 2021
1 Answer
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Anonymous A asked on Aug 05, 2021

are There any disadvantages for having deductibles in insurance plans (apart from being a cost to consumers that may deter them from buying the policy)

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Ian
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Content Creator
replied on Aug 05, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

You are correct here in that it is a dissuading factor in a customer's decision to pick your product.

Ultimately, if you're a good insurance company, you perfectly understand the risk “scale” and know what is the optimal deductible level where minimal losses to you will occur but maximum “perception” from customers around value also occurs.

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