1.

Why do you think the SSS is pursuing higher returns by improving the quality of the
investments?
2. Why would the rise in beneficiary-pensionary possibly affect the growth of fund’s
contributors?
3. How does the retirees increasing population pose as a challenge for SSS?
4. Why does improved financial activity be a convincing factor to the current members?
5. Why does the Finance Secretary propose cutting back on overhead expenses and use modern
technologies to better serve its’ members?
6. What would you suggest that SSS do to further increase its revenues?
Answers:
1. SSS is pursuing higher returns to keep up with the rise in the number of beneficiary-pensioners.
If they do not keep up with the growth of pensioners, profits for the company will diminish. Another
reason is to also reduce overhead expenses like employee salaries and insurance.

2. As long as the number of pensioners increases, then the amount of cash the insurance company
has will continue decreasing. To make up for this, insurance companies will issue a higher premium
cost to contributors in order to break-even.

3. The number of retirees may be increasing due to earlier retirement ages. If the retiree population
continues to increase, the company will have to pay more pension funds. Having more liabilities than
usual means that the company will have fewer profits.

4. Insurance companies want to make contributors feel that their investments are indeed
contributions to the future. They want to make you feel ensured that they will be able to comply with
their policies when an unfortunate accident occurs.

5. The finance secretary proposes investing in technology because modern technologies are far
cheaper to use than real employees. Machinery and equipment have no insurances or salaries. Online
application and submissions are also becoming more popular these days.

6. Insurance companies get a lot of money from premiums and instead of leaving the money lying
around, they should invest it in different assets that would yield profits for them eventually. Aside
from investing in technology as the finance secretary said, you could also invest in real estates and
government bonds so that when the insurance company has claims to deal with, it not only has enough
to settle the claims but also has enough profit left to keep. Insurance companies should always be
careful with investments which is why most of the investments should be in government bonds and
low-risk investments.