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April 2015 Q2

Discussion in 'SA3' started by DanielZ, Sep 17, 2015.

  1. DanielZ

    DanielZ Member

    Hi all

    In the last question of the Apr 2015 paper, the examiner's solution refers to contingent business interruption as being contingent on a property claim with the same insurer.

    However I thought contingent business interruption was based on losses suffered by a supplier?

    Thanks
     
    DanielZ, Sep 17, 2015
    #1
  2. Katherine Young

    Katherine Young ActEd Tutor Staff Member

    Yes I think it's easy to get confused about this. The most common definitions say that “business interruption insurance” protects the insured against loss of earnings resulting from damage to property owned / controlled by the insured, whereas “contingent business interruption insurance” protects the insured against loss of earnings resulting from damage to property that the insured does not own / control.

    The problem is of course that different people use different terminology and may not even distinguish between the two. As ever with general insurance products, it's important to understand the cover rather than stick to specific names.
     
    Katherine Young, Sep 18, 2015
    #2
  3. Adithyan

    Adithyan Very Active Member

    Hi! I am having a doubt in the same question.

    In the ASET, under (d) DATA
    "Legacy data systems determine data grpings for long... Although company A's IT dept will resolve these issues (How?)

    If data systems are merged, there will be fewer grpings (agreed) ... But how can you merge wheN B & A have not historically had the same groupings?


    Allignment of current business

    What does broad groups mean? if data is not consistent wouldn't you need more narrower, smaller groups?

    Kindly help!

    Regards
    Adithyan
     
    Adithyan, Dec 29, 2020
    #3
  4. Ian Senator

    Ian Senator ActEd Tutor Staff Member

    Legacy data systems (Company B may have been using the same groupings for many years) may limit the flexibility of Company A to use other groupings. If Company A's IT team has the ability, they may be able to sort this, eg by delving into the old data and re-grouping the output.

    Merging. Exactly - this is just saying that merging is trickier when groupings are different, and it may be easier to leave them as they were and live with it.

    Broad groups: this is saying that it they may need to use bigger groups that contain some heterogeneity, which may be more acceptable than having many very small groups where the difference between A and B is huge.
     
    Ian Senator, Jan 4, 2021
    #4
    Adithyan likes this.

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