For part viii) could someone explain why the Insurance liabilities and Additional information figures are inconsistent? The examiners report says: "However reserve figures seem inconsistent with LRs as UEP is 600 and claims reserve is 700." where did they get that the UEP is 600 and why is that being compared to the claims reserve?
Hi Phos2, This question has been asked before. Take a look at our previous post: https://www.acted.co.uk/forums/index.php?threads/april-2011-question-2viii.10439/ Best wishes, Katherine.
Hi Katherine, Thanks I will call to try get the ASET. I still don't understand how comparing UPR (the 400) to the 700 implies inconsistency between the figures? To me it just looks like the two figures are just not comparable at all, but I don't know how we can claim they are not consistent. Thanks
The examiners are simply saying that the numbers look wrong. Look at it this way: If UPR is 400 then earned premiums must be 600. Hence, claims arising from earned business should be 600*85%=510. However the claims reserve is 700, which is way bigger than 510. (On another note, I can’t imagine there will be any old copies of a 2011 ASET available anymore I’m afraid.)
