In this piece, JOSEPH INOKOTONG states that rate cutting is not always bad entirely, as in some cases it can be good for both customers and insurance companies.
Rate cutting in insurance refers to the act of an insurance company reducing the premium that a customer pays for a policy. This is typically done in an effort to attract new customers or to retain existing customers. Rate cutting can be beneficial for customers as it can help them save money, but it can also be problematic as it can lead to underpricing of risk and potential financial losses for insurance companies.
However, it is not uncommon for insurance companies to engage in rate cutting from time to time, but it is not…
Source: Nigerian Tribune
