Expense data

[Helloall]

Hi,

I was just wondering where expense data comes from?

One of the answers in a past paper to check the quality of the expense assumptions is to compare the total expenses against the accounting data.

If the expenses dont come from the accounting data, where does it come from?

Cheers
Mark

 

[Mark Willder]

Hi,

I was just wondering where expense data comes from?

One of the answers in a past paper to check the quality of the expense assumptions is to compare the total expenses against the accounting data.

If the expenses dont come from the accounting data, where does it come from?

Cheers
Mark

Hi Mark

Insurers may hold data in lots of different places. It may all ultimately have come from the same source, but there is the potential for errors to creep in as data is transferred and manipulated by different departments. So the solution is suggesting that the data held by the actuaries should be checked against the accountants data and this will flag up any data that has gone missing or been double counted at some point.

Best wishes

Mark