This means you can now use \(\LaTeX\) to write pretty equations in your posts like \(x^t \) or \(y_i\) or \(\alpha\) or \(\int_a^b 3x^2 dx \) or \(\sum_{i=1}^n x^2 _i \) and the all important \(

\require{enclose}

{}_{m|}\ddot{a}_{x:\enclose{actuarial}{n}}^{(p)}

\)

For more information then please see this...

Writing equations in your posts]]>

However it is the composition of the delay I am interested in. What is the reporting delay like? I assume this is very short relative to the settlement delay?

Am I right?]]>

The solution mentioned the 'tranche' method in order to accurately work out the EP for the year, allowing for various rate changes applied throughout the year

Can someone show me how it's done? My ActEd solutions only go as far as 2007 exams, I wonder if the proper way of doing this question was shown in the ActEd solutions?

Also, if I started using the tranche method, will it affect the way the rest of the questions is calculated? Or just part (i)?]]>

I am a little confused about part (iii) of Q.7 in the 2009 Mock Exam, as the question says that the premium rates within each cover level are to be "the same for all policyholders".

Does this mean that you should average all of the risk premiums within a given cover level? The solution didn't go down this route - it seemed to be a pretty standard pricing answer, I thought. Would anybody know if keeping premiums uniform within each level of cover is a key part of this...

2009 Mock Exam, Q.7]]>

I've come across 2 accounts questions in which you are asked to calculate an investment return for the year in the absence of (Q5 Sep 2008, Q5 April 2006)

2006 solution used

(UPR b/f + O/s Claims reserve b/f - DAC b/f)* investment return

2008 solution used

(UPR b/f + O/s claims reserves b/f + 1/2 * cashflow during the year) * investment return

where cashflow is defined as NWP - paid expenses - paid claims

are they both correct? doesn't it matter which one I...

Calculating investment return on accounts question]]>

the possible adjustments are for

unusually light and heavy experience

large claims

trends in claims experience

changes in risk (this is the change in the underlying nature of the riskt? both external and internal changes?) -

changes in cover - is this the same as changes in terms and conditions?

cost of reinsurance

However, there are also...

Adjustments to claims data]]>

I agree with this.

However E[X-100|X>100] term is made up of another term which has a P[X>100] on the denominator, I agree with this. So the P[X>100] terms cancel leaving just the integral in the numerator of the E[X-100|X>100] term times by E[N].

However the ASET solutions the P[X>100] seems to come back again (bottom P28). I thought it cancelled? Maybe it's getting late but im going mad trying to see how it came back.

April 2009 Q5 (ii)]]>

A bit unconventional to ask perhaps but anyone has any thoughts about the paper just gone? It's passed so there's little point discussing the intricate details of difficult questions, but I was just interested in getting a feel for how other candidates found it.

Cheers]]>

How come it just uses X?

When would I have to calculate the parameters for S?

Can someone help please? Thanks]]>

For part (ii), I can work out the mean and standard deviation of the lognormal. But the solution at the end of that part says "if working in £, mean of A is 17.16, etc". How are these number calculated?

For part (iv), I can work out the 99.5 percentile for the distribution, but to translate this to claim amount, I am a bit clueless.

Thank you very much for your help.]]>

Thanks]]>

The question states that the DAC is a % of the Gross Written Premium. But the solution seems to calculate this as a % of earned premium. For example for company X, the GWP is 50. If assuming the risks are written uniformly over the year, then the earned premium should be 25. Then 30% of this gives 7.5, which can be rounded to 8, as per the answer.

But does this mean the question is wrong then?]]>

I am a bit confused by the solution for this question. If assuming the claims occurring on average mid-month. Shouldn't the fourth column in the calculation table be (Month + 0.5) * earned exposure, instead of (Month - 0.5) * earned exposure?

For policies written in September 2006, it is given in the question that the policies incept on the first day of the month, so the claims should be expected at mid-month. This would mean month 9.5 is the...

Sep 2007 past paper question 2 part ii]]>

Or is the solution wrong? Or is there another reason why the claims cost period is 17.5 months and not 18.5 months?

Cheers.]]>

For part (ii)(c) shouldn't the denominator be 300 - (60 x

Thanks ]]>

I've been working through the revision books and flash cards and had a few questions:

1. Chapter 5 - Will a broker ever get as many underwriters as possible to sign up for a particular risk under the London Market slip system so that under the co-insurance principle the risk for the policyholder is spread across as many parties as possible (ie. if one defaults then the policyholder will still get most of his claim) or will they get 100% or just over to avoid the effort and likely...

A Few ST3 Questions]]>

Where does the bit

Theta = 10% * Capital / 10m, and the following

Theta^2 = 115.13m / 100m term come from?

This makes absolutely no sense to me - Anyone understand this?]]>