CAS Strategic Planning and Decision Making 2

Question 1

In a SWOT analysis for an insurance company, which of the following would be classified as an 'Opportunity'?

Accepted Answer

Emerging market for cyber liability insurance

Answer

An opportunity in SWOT analysis is an external favorable factor, such as a new product market, that the company can exploit for growth.

Question 2

Which strategic planning framework uses four perspectives—financial, customer, internal processes, and learning & growth—to translate strategy into action?

Accepted Answer

Balanced Scorecard

Answer

The Balanced Scorecard, developed by Kaplan and Norton, aligns business activities to the vision and strategy of the organization using those four perspectives.

Question 3

A property-casualty insurer is considering entering a new geographic market. Under the Ansoff Matrix, this strategy is best described as:

Accepted Answer

Market Development

Answer

Market Development involves selling existing products to new markets, such as geographic expansion, which fits entering a new region with existing coverage offerings.

Question 4

Which decision-making model assumes that decision makers have complete information and will always select the option that maximizes utility?

Accepted Answer

Rational Choice Model

Answer

The Rational Choice Model assumes perfect information, clear preferences, and optimization, though in practice these conditions rarely hold.

Question 5

An insurer's strategic plan identifies a goal to reduce expense ratio by 5 points over three years. This goal is best described as:

Accepted Answer

A strategic objective

Answer

A strategic objective is a specific, measurable goal that supports the organization's overall strategy and is typically set over a multi-year horizon.

(CAS) Casualty Actuarial Society Practice Test

(CAS) Casualty Actuarial Society Practice Test

CAS Strategic Planning and Decision Making 2