Hi I wonder what in this question indicates we should be discussing potential levers on surplus rather than capital management techniques? Is it just that the rest of the question is on surplus? And on the second question, can you help with definition of data requirements: in this question it focuses on data required for cashflows, whereas I considered things impacting volume and quality of data, for example disclosure requirements under regulation format of data data controls granularity of data for risk management number of years of data used automation of data collection cost of data collection and management of this importance of being able to compare from year to year Are data requirements always referring to cashflow requirements? Or is it just in this question we have been led down the path of cashflow requirements because the question is based on premium setting? Thank you
Hello Thank you for your post. In Qn 5(iii), I agree that it is the overall direction of the question, ie the earlier parts of the question relate to sources of surplus together with the wording 'actions ... to reduce the deterioration' which is not as strong as saying capital management tools to perhaps inject more funds. In 6(iii), again I'd say it is primarily the earlier parts of the question which are pushing us down this route, ie that you have been asked to describe the data for pricing in (ii). Also note the specifics in the question, ie whole life vs funeral cost plans, where we are given specifics I want to make sure that is a real focus in my answer of using this to produce my points rather than covering higher level ideas. I hope this helps and your studies are going well.
