CAS Practice Exam 2025 – Complete Study Guide

Insurers can gain a significant advantage by providing risk control activities, as these actions help to attract new customers. Risk control activities, such as safety programs, loss prevention training, and risk assessments, demonstrate the insurer's commitment to helping clients manage and reduce their exposure to potential risks. By actively engaging with clients to promote safer practices and reduce the likelihood of loss, insurers can distinguish themselves in a competitive market.

When potential customers see that an insurer offers these types of supportive services, they may be more inclined to choose that insurer over others. This perception of value-added services can enhance the insurer's reputation and build trust, making clients feel more secure in their decisions to purchase policies. Moreover, emphasizing risk control can also lead to lower claim frequencies for the insurer, further bolstering their attractiveness to new customers who are drawn to stable, reliable providers.

While other options involve negative outcomes such as reduced customer satisfaction, increased operational costs, or higher policy premiums, the focus on risk control actively contributes to creating positive relationships and perceptions, leading to business growth through new customer acquisition.