would you kindly advise the derivation from the UWY ULR loss % to the AY ULR loss %? and for the assumptions, concerning the content in the question had clearly stated that ......written on a risks attaching basis, would it be accepted for answers assuming on loss occurring basis? in addition, concerning it's expected that the exam would still happen online for this year, could it earn marks that some assumptions are implicitly embedded in the formulae of the spreadsheet for the answer? and, in terms of the "underlying contracts" for reinsurance contract, does it refer to the underlying direct insurance policies or the reinsurance contracts?
The whole question is asking for the derivation of the AY LR, so you'll need to see the solution in full, as it's quite lengthy. It's covered by the examiners' report on the IFoA website, and also in detail in our ASET product. If the question says RA basis, then no, you'd lose marks if you assumed an LOD basis. For using spreadsheets, you need to carefully read the exam regulations on the IFoA website. Embedded formulae or assumptions would not score. 'Underlying contracts' usually refers to the direct insurance that the reinsurance is covering.
