While trying to solve questions that relate to actuarial investigations and analysis, I am facing a lot of difficulty in generating points. Please can someone guide on how do I approach such type of questions?
Many investigations you carry out in practice will involve building a spreadsheet. So I tend to imagine: what that spreadsheet will look like, what groupings might you use? eg accident months or years down the left, a separate section for each class of business why you have included those numbers in your spreadsheet, ie what those numbers can tell you - in other words how you would interpret your numbers. eg number of policies sold, and lapse rates, will help you analyse how your mix of business is changing what you might compare to eg compare the number of policies sold to the loss ratio, for each key type of policyholder. If you see the loss ratio increasing in conjunction with an increase in volume for one type of polictholder, this might indicate that you have anti-selection Alternatively, start with a hypothesis and work out how you could find out whether your hypothesis is happening. Eg, imagine that you want to investigate the effectiveness of your reinsurance programme. what groupings would you have in your spreadsheet? group by RI treaty, class of business, low layers vs higher layers, by reinsurer, by cover type (LOD, RAD, claims made) underwriting year down the LHS of the spreadsheet what numbers and calculations would you include? RI prem/GWP, gross LR, net LR, allow for reinstatements and swing rating what could you compare to? previous years gross vs net credit rating consider relationship with brokers and reinsurers This is just an example, but the same method of 'building a spreadsheet in your imagination' often helps me get ideas.
