Which benefit can be attributed to packaged policies over individual policies?

Packaged policies typically offer lower administration costs compared to individual policies. This is largely due to the streamlined processes involved in bundling multiple types of insurance coverage together. When several coverages are combined into a single package, administrative tasks such as policy issuance, renewals, and endorsements can be handled more efficiently. Insurers can save on overhead and operational expenses, which often translates into lower premiums for the policyholder.

In contrast, individual policies may require more extensive administrative efforts for each separate coverage, leading to higher costs associated with policy management. This can include additional paperwork, separate underwriting processes, and distinct customer service interactions for each policy, all of which increase the time and resources required.

While packaged policies might offer a certain level of coordination of cover, the primary advantage in terms of costs lies in the reduced administrative burden that packaged policies provide.