Sample exam - answers (pass)

Hi

Could you please confirm whether the table of the percentages of gender split on page 3 is correct? Is it based on the number of policies? Thanks.

Regards
Jinning

 

Yes it is correct.

 

And how have the gender splits for PTP and PFC been calculated?

 

I had the same question

 

I have edited my answer to correct myself and make it clearer. Although this feels too complicated in a CA3, or should I say CP3 context.

Gender splits for the two products are calculated using the TP:FC policy split given in the question.

Illustrating (please allow for rounding) :
> TP male policies are 33% of total male policies, and TP female policies are 29% of total female policies.

For TP policies:
> 33% x 54% (total male split) = 18%
29% x 46% (total female split) = 13%
TP policies = 18% + 13% = 31% of total policies
(therefore FC policies are 100% - 31%=69%)
Male split for TP policies = 18%/31% = 57%
Female split for TP policies = 13%/31% = 43%
...allowing for rounding.

Hope this makes sense.

 

This is still not clear. How have the gender splits 54%/46% M/F given in the table on page 6 been used to derive the following split in the answer?

 

Apologies, I seem to have got it wrong earlier. Have edited my answer to explain it correctly. Cheers

 

How is the 53/47 split calculated?

 

Total male premium = 4.509 , Total Female premium= 3.841 ( Calculated as Respective % age multiplied by total premium i.e. 8.35)
Total Male TP Premium= 1.48797 Total TP Female Premium=1.11389( Respective third party proportion X Premium)
This gives total T P Premium( Male+ Female)=2.60186
Male TP Premium %=1.48797/2.60186=57%, Female TP Premium =1.11389/2.60186=43%
Similar calculation could be done for OD
TP=PTP
OD=PFC

 

I believe Maxit has the right idea. I personally think it's quite a stretch to expect students to present it this way though.

Has no one else found it weird that the average premium for third party is more expensive than fully comprehensive?