Can't quite get my head around the mark scheme for this one.

- Exposure rating to calculate a risk premium for cargo insurance policy...

...but not one mention of exposure curves in the mark scheme (deriving them, using them or selecting them), which instead seems to focus on rating factors!

- Perhaps i'm getting confused as original loss curves are less common for direct pricing which this question is about?

- The specific policy may have a different limit profile to...

April 2023 Q5ii exposure rating question]]>

the period from 1 December 2018 to 1 August 2019. Determine the number of years for which you will need to project claims inflation."

Can you please explain using example or diagrammatically, how we are determining the projection period as 2 years 4 month.]]>

I tried to use adjust the ilf curve to adjust the losses which was barking up the wrong tree. Do you ever need to use that inflation adjustment to an ilf?]]>

understand that there is an additional level of correlation between underwriting risk and liquidity risk and that relationship may be relatively complex to model as it would only tend to materialise in the tail. However am not sure what the following means/relates to:

". . . with any outcomes that are within ULR expectations

. . . or below any level of additional free assets required

. . . or that do not have any specific reinsurance recoveries that need additional funding

. ....

Sept 2015 Question 5iii]]>

For Q9 in the Sept2023 exam:

Why do they add 0.1*exp(-0.02*10) at the end when calculating the price?

Also, how does this question differ from the first practice question in the chapter that suggests a long put and short call? The wording seems almost identical.

Thanks in advance!]]>

In my recent tutorial slides, question Q3 Apr-18 is recommended as a practice question. Is this question still worth practicing since the current exams are now not UK specific?

Many thanks]]>

I am struggling a bit with this one as the solution skips straight from the assumptions to say the fund would accumulate over 40 years to about 360k if invested in assets with a rel. high exp return. How did they get to 360k from the assumptions?

A hint would be much appreciated It seems from the examiners report this question was not well answered on the day.

Thanks in advance!]]>

However, in ch.18, P.32, it says the PROt is for policy year t+1, the year start at policy time t. Is it the same thing?]]>

- The returns from the unit linked business is less than expected by the customers
- The expenses are higher than expected
- The company would be making a loss on with profit business
- In case the unit linked business is not priced correctly it could be loss making as well
- The company is not able to achieve cross subsidies between the two lines of business...

September 2023 2(iii)a]]>

Thanks]]>

Thanks.]]>

I'm not sure how I can obtain the revised % developed and CDF.

These are the steps I'm taking and please let me know where I've gone wrong:-

1. Estimate independent ultimate based on IELR

2. Take incurred claim as a proportion of the independent estimate. This will be the % developed

3. Assume that youngest year is half as developed as y1 factor. So divide 22% by 2 = 11%

4. Then assuming that claim development is uniform between development years. I take the average of 22% and...

Sept 2017 Q7 ii]]>

I am graduating from my A-Levels this June and will be starting my actuarial science degree this September. I have received offers from LSE, City Universit, and Manchester. At the same time, I applied for ActSci degree in Malaysia too (HW Malaysia Campus). So, here is the question, where should I study my degree, UK or Malaysia? Is there any difference between the education in this two country?

Hope to receive any sensible reply soon....

Actuarial Science in the UK vs Malaysia]]>

Does the approximation for a continuously payable whole of life annuity also apply to a temporary continuously payable annuity?

I.e, we know that:

abar_x is approx equal to adue_x-1/2

But is it also the case that:

abar_x:n is approx equal to adue_x:n-1/2

Assuming the above doesn't hold, I also have a second proposition for what might work.

We know that:

adue_x:n=adue_x+v^nnpxadue_(x+n)

and:

aarrears_x:n=aarrears_x+v^nnpxaarrears_(x+n)

So is it the case that:...

Continuously payable annuity approximation - does it hold for temporary annuities?]]>

1) The size of the personal pension business is very small and thus the guarantees biting would not impact the capital required.

2) Any guarantee biting does not lead to a material impact on the profit.

3) The company has a low longevity risk and does not consider the onerous option to be...

ASET April 2014 (v)]]>

The basic equity principle states: "the interests of unit-holders not involved in a unit transaction should be unaffected by that transaction". Doesn't the very use of a bid/offer basis contradict this?

For example, a particular policyholder who is buying units will have a different unit price depending on whether other policyholders are buying (appropriation price) or selling (expropriation price). This doesn't seem too fair on such a policyholder?

Is this what is meant by the core...

Unit Pricing Query]]>

We've produced a document about topical issues and this is attached as a pdf. It provides a brief summary of a number of issues and weblinks to further sources of information.

Please use this thread to add any comments about topical issues and...

SA4 topical issues]]>

I have had a go at X5 and I am looking at the solutions and it mentioned 'crystallised' a lot.

I have not come across this and I have googled it, but I can't seem to understand how it applies to the scenarios. For example, Q5.3.c solution - "any deficit would be crystallised within the transfer value calculation, reducing the benefit received".

Or Q5.3.d solution - "It may be possible to avoid realising assets. However, any scheme deficit would again be crystallised, reducing...

X Assignment 5 - Q5.3]]>

What I've done to visualise this is to create a table in excel with 1 unit of exposure in each month starting from July 2014 to June 2015. I've ended up with 144 units of exposure. However, to add up UPR after 2015, I've only had this number of units: 5,4,3,2,1 which adds up to only 15 (where 5 is the number of unit exposures in Jan 2016). However the solution seems to be 0.5...

Apr 2016 Q4iii]]>