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A few questions on the Fall 2012 exam

S

SpeakLife!

Member
Very surprised there's no thread on this exam.

Just got done taking this one, and it seemed like a very fair exam (notwithstanding the regulator question, which I absolutely HATED!). However, I'd like to know whether you all think the following responses would have been awarded any credit, as they weren't included in the Examiner's Report (but seemed "reasonable" to me):

4(v)(d):
- Insurance companies' operational losses are likely less correlated than their insurance losses, since they may have similar exposure distributions by geography. For example, an earthquake could have similar effects on all three insurers' financials.
- Operational risks are particular to the given company. For example, not every company will have a high error rate with respect to booking premiums correctly.
- As such, the assumption of independence seems appropriate.

5(iii):
- Focus on recruiting younger, healthier employees.
- Incent older employees to retire earlier.
- Consider ceasing operations in countries with greater political risk and higher changes of war and political unrest.
- Consider shifting operations to countries with lower mortality rates and longer-living populations.


I try to be quite harsh in self-grading, so your insights are helpful and appreciated.

Thanks!
 
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