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Recent Content by Darren Michaels

  1. Darren Michaels
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    April 2023 Question 8(i)

    Hi Heena I am afraid that the calculation above does not look correct to me. You need to work with the reserves (or ultimates by accident...
    Post by: Darren Michaels, Apr 16, 2024 at 3:56 PM in forum: SP7
  2. Darren Michaels
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    April 2023 Question 8(i)

    Hi Heena If I have understood your approach correctly, then I think there may be a slight flaw in step 5. It sounds like you are assuming that...
    Post by: Darren Michaels, Apr 16, 2024 at 9:05 AM in forum: SP7
  3. Darren Michaels
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    Sep 2023 Q1 (ii) - Affect of reinsurance to net Chain Ladder Triangle

    Proportional reinsurance is normally written on a risks-attaching basis. As motor insurance is a relatively homogeneous class of business, the...
    Post by: Darren Michaels, Apr 15, 2024 at 10:55 AM in forum: SP7
  4. Darren Michaels
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    April 2020 Q6(ii)

    We are equating recoveries less premiums (including reinstatement premiums pro-rata to amount recovered) for programme B and programme A. So for...
    Post by: Darren Michaels, Apr 7, 2024 in forum: SP7
  5. Darren Michaels
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    SP8 September 2023 Question 6

    Surplus RI is a type of proportional RI. If the loss gets bigger the amount retained by the insurer and the amount ceded to the reinsurer increase...
    Post by: Darren Michaels, Apr 7, 2024 in forum: SP8
  6. Darren Michaels
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    Capital Modelling

    That’s correct it was added to the ST/SP syllabus in 2010 when ST3 was split into ST7 (now SP7} and ST8 (now SP8). It has been examined in...
    Post by: Darren Michaels, Apr 7, 2024 in forum: SP7
  7. Darren Michaels
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    Subj 403 paper 2 2002 September Q1ii

    Have a look at the workings in the post Ian has linked to above. Recall that the increase in the free assets from one year to the next will be...
    Post by: Darren Michaels, Mar 29, 2024 in forum: SA3
  8. Darren Michaels
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    Assignment X 3.7

    This may make it easier for the regulator, eg to compare amounts between different insurers.
    Post by: Darren Michaels, Mar 28, 2024 in forum: SP7
  9. Darren Michaels
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    Question 3.4 Assignment X3

    Don't forget the basic chain ladder method is applied to cumulative and not incremental claims triangles. I think your examples above are based...
    Post by: Darren Michaels, Mar 28, 2024 in forum: SP7
  10. Darren Michaels
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    ST7 April 2013 q1

    Between mid-May and the end of the year there are 7.5 months, so the business in Q2 is 7.5 months earned by the end of the year - which gives...
    Post by: Darren Michaels, Mar 26, 2024 in forum: SP7
  11. Darren Michaels
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    April 2012 Q6 i rate change

    The data provided is at 31 March 2012 and the annual contract runs from 1 June each year, so you need to gross up for the premiums estimated to be...
    Post by: Darren Michaels, Mar 25, 2024 in forum: SP8
  12. Darren Michaels
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    ST3 2008 April Q5

    No this question is relevant to SP8 and not SP7 as it is about pricing and not reserving or capital modelling. If you look at this post on the...
    Post by: Darren Michaels, Mar 25, 2024 in forum: SP7
  13. Darren Michaels
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    SP8 September 2019 Q7(ii)

    No it would still be 0 as with only 2 years of inflation (from 2018 to 2020) it falls below the £1m deductible.
    Post by: Darren Michaels, Mar 21, 2024 in forum: SP8
  14. Darren Michaels
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    April 2018, Q4 ii

    For a factor with three levels, if a risk is not in either of the first two levels of some factor, then it must be in the third level. Its...
    Post by: Darren Michaels, Mar 14, 2024 in forum: SP8
  15. Darren Michaels
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    Practice Question 27.8 - "Basic elements of the revenue account"

    The total expenses paid are a balancing item between earned premiums, claims incurred, increase in DAC and the underwriting loss given in the...
    Post by: Darren Michaels, Mar 5, 2024 in forum: SP7