• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Recent content by Katherine Young

  1. K

    Profit loading

    When we consider investment income in Method 2, we might only think about the return on assets backing the liabilities, ie the return on technical provisions. We might go one step further and try to include the investment return on other funds, ie the portion of SCR relating specifically to...
  2. K

    ST8 April 2014 Question 4,

    See attached file.
  3. K

    September 2024 Ques 3 (iv)

    Welcome to the world of SA3! The examiners want students to demonstrate commercial awareness, so it pays to add depth and nuance to your answers. This can be done by discussing what's feasible, what'd likely to happen in practice, giving advantages / disadvantages / examples / practical...
  4. K

    SA3 Topical Issues

    Why not make a list of the topics you consider important and post it here? Then others can add their own ideas to the discussion. Yes indeed. For example, flood insurance was examined on multiple occasions around the time that Flood Re was being developed.
  5. K

    September 2023 Ques 4(ii)

    The loss ratio for UW year 2021 is very high, so assume that a 'normal' loss ratio can exclude this year. ie LR=(724+13,262+9,000)/(24,120+24,560+36,000)=27.14% In this case, the flood claims are 28,425 - (27.14%*18,950)=23,281. Assume reinsurance is annual and LOD. Half the premium incepts on...
  6. K

    Outstanding claims provision 2016 april Ques 2(viii)

    The outstanding claims reserve is, as you suggest, IBNR, Outstanding reported claims, IBNER (and also reopened claims reserve and CHE, although these are often implicitly included within the reserves I've already listed). The examiners have at various times called this the OCR, the OSCR, or in...
  7. K

    September 2024 Q2 Part iv.

    Hi George, yes you're not the only person to have targeted other areas. The examiners wanted to prioritise the area that was most affected, ie the claims handling team. As with so many questions in SA3, it's best to focus on the biggest issues. The claims handling department will be...
  8. K

    September 2015 Q6 Process/Model/Parameter Uncertainty.

    Hi Rayhan, The Core Reading (and the Examiners' Report) have only scratched the surface of a topic that is in fact rather complicated, because it is the underlying mathematical theory that determines which of parameter error / model error / process error are included in the reserve range...
  9. K

    September 2017 Q7 (i)

    The exam talks about a whole portfolio of RAD business whereas you are considering a single risk. Consider a portfolio of risks-attaching annual reinsurance contracts which are written during the course of 2018 covering underlying direct insurance contracts which themselves are annual. The...
  10. K

    Premium liabilities - What are they?

    Premium liabilities are as described above. Claims liabilities are the liabilities in respect of expired periods of cover (ie claim events that have already happened).
  11. K

    Non-modelled catastrophes vs. unmodelled elements

    Yes there is overlap, but there is more to 'unmodelled elements' than the catastrophes alone. Your answer would depend on the wording of the question, hopefully it'll be clear from the context. See the Sept 2024 exam for a question on this topic.
  12. K

    Assignment X5.1 - Understanding Commutation

    I'm reluctant to say this David, although I understand your logic. They're not the same of course as you know. You've listed a couple of the differences yourself. Also, crucially, a business transfer means that a policyholder (or in this case the cedant) will continue to have cover in...
  13. K

    Assignment X5.1 - Understanding Commutation

    True enough, but it is very very unlikely that Company Y would ever have written a class of business consisting solely of risks from a single cedant, so I think on this occasion it's a safe assumption. Also, the notion that 'liabilities remain in respect of risks that are not commuted' has...
  14. K

    Assignment X5.1 - Understanding Commutation

    You can only commute one contract at a time. So even after commuting the treaties with Company X, Company Y will still have liabilities in respect of its arrangements with other cedants.
  15. K

    Timing point re the capital requirement

    Coming into line (CIL) is the process of a member depositing assets into their FAL. Therefore it is unique to Lloyd's. Non-Lloyd's insurers (whether in the UK, EEA or elsewhere) wouldn't talk about CIL at all. It simply isn't relevant to them, they aren't a member of Lloyd's so they don't...
See more
Back
Top