Separate names with a comma.
Again, no strict definition. For example, some take it to mean increase in both frequency and severity, some just severity. So again, just say...
There's no strict definition, Jun. Many practitioners take trending to mean adjusting solely for claims inflation, but others interpret it to...
These two years were a smaller series of webinars due to Covid. Back to normal this year.
Hi Pooja This is also in the SP7 notes - see https://www.acted.co.uk/forums/index.php?threads/sp7-upr-question-on-page-13-of-notes.16390/ The...
No: When you do a triangulation, you're always going to end up with the same ultimates regardless of the cohort used (think about it, if I gave...
Yes, see Chapter 12 page 35.
Hi Padasala The tax rules on equalisation rules have changed since this exam was written. Transfers to/from are no longer relevant for tax...
Actually, Mavvj is correct! And yes, there have been plenty of past questions asking for a specific number of something.
that's correct, mgh. Ian
No reason why not, reinsurance calcs are pretty common in both SP7 and SP8 exams, and the SA3 syllabus is no more demanding in terms of the...
It's only like this because of the wording of the question (normal commissions are normally expressed as a percentage of the ceded premium). Your...
Maybe a clue on the year and sitting, Ed? :)
Hi Trevor If the IFoA have asked you to use 2.0 line spacing, then I would use 2.0 line spacing. I very much doubt you'd get penalised for doing...
Hi Smith, This is another question that's fully covered in ASET (2014-2017 papers). You may save some frustration with all these recent questions...
Hi Trevor You'll see in more recent papers that the expected word count is no longer given. You can of course still lose marks for excluding...
The sentence only mentions capital modelling here because the syllabus objective for this chapter/unit is specifically about how risk and...
Yes, for the example above, that would be enough to score the full 1 mark. However, sometimes the points in the examiners report are the 'short...
That's a very open question! Perhaps you can be more specific about which element you don't understand? Splitting data into various homogenous...
They used to be available from the IFoA library (Oxford and/or Staple Inn). If you contact the librarian you should be able to find out how to...
Yes, there are definitions. See the Glossary for the first two, and a dictionary for the third! There's a little overlap in the first two as...
It won't do you any harm (apart from use up valuable study time which, arguably, might be better used in other ways), but I wouldn't go too far...
Not sure! Page 27 of Chapter 4 is the Core Reading's take on it, which is the material you should concentrate on, and is nowhere as detailed as...
This is all covered further in Chapters 4 and 9. 2006 was a long time before S2, and IFRS17 has yet to start even now, so this past exam question...
I don't know of any, but there may be more info on the IFoA website, under the sustainability section, which you could look through to see if that...
Please see https://www.acted.co.uk/forums/index.php?threads/words-count.17818/ Suitable formats are covered in the Course Notes.
The exposure and total response figures are calculated by adding the appropriate values from the first table. The predicted values are then...
Well, there are loads of other reasons, far too many to go through here. There are implications for pricing, reserving, competition, markets,...
I think you can probably think through this one yourself Duc. So two questions for you: 1) would you buy 20-year long car insurance? 2) would...
'Dull' in that life assurance claims don't generally develop (individually) by themselves. The whole point of a triangulation (eg chain-ladder...
Hi Duc Essentially, the methods are in fact the same. It's just that the components of that calculation are different because of the differences...
Yes, that's fine - it's just rounding differences. Mini-ASET gives a full solution including your approach.
Pages 12 and 13 give you the normal definitions of claims ratio and expense ratio. DAC is not part of the calculation.
Don't worry, your understanding is fine. The Core Reading is a bit confusing because it's talking about inflating the threshold forwards (ie...
Sounds good to me!
Only the obvious - one's to do with primary (direct) business, the other is to to with reinsurance. Bear in mind that different things affect...
Think of a commutation as a definite payment now instead of a possible payment (recovery) later. It makes more sense if you think about non-prop.
Depends on how you define things. But normally, loss ratio is claims incurred over earned premiums. You have the loss ratio, and if you know the...
The 'suggestion' is not that overall costs will drop, it's that the company should start to sell annual policies over the internet (although yes,...
Yes, that would be a reasonable and consistent assumption. Don't forget that 'expenses paid' includes non-acquisition costs too though.
EP=WP-increase in UPR (increase being c/f-b/f). If the UPR is net of DAC, then you don't have an 'increase in DAC' line. Paid expenses is just...
Hi Smith You can normally use the terms interchangeably. Ian
Hi Joe You'll probably understand it better if you change the Core Reading from 'upfront cost of one reinstatement at 50%' to 'upfront cost of a...
Hi Edward See p125 of the Course Notes. Letters/reports/memos/emails are common, yes, but there have been other formats too if you go back...
Hi Nishant When trying to reconcile marks, we'd suggest asking a colleague to mark your attempt using the examiners' schedule. Hopefully they'll...
3.3 is a factor-based approach - in other words, 'take one answer and multiply it by a factor to get the answer you need'. Yes, your generic...
Ch2 p14 is still talking about the historical position (ie pre 2011/12), p15 talks about the changes due to the Competition Commission report. I...
Hi Smith There hasn't been a 'word count rule' for some time. If you search threads in this forum you'll see various old discussions about it. Ian
Hi Paras We have found that mnemonics don't really help for SA3 specifically, given the nature of the bookwork and the exam itself, but I would...
Hi Padasala I'm afraid ActEd don't get involved in queries about how an individual's exam scripts have been marked - that's for the IFoA - but we...
Yes, I think you're right. I suspect they didn't mean that the ratio looks low compared to other claim types, probably just that the ratio...
1) Sorry, you've lost me, can you please simplify your question? Or split your questions out if there's more than one there? I think what you're...
As the exam question had an error in it (yes, they did mean 2015), they accepted a wide range of potential answers as long as the assumptions were...
(iii) 'Incurred Claims' is not the name of a method per se. The examiners are just saying that they will take incurred claims to date as the...
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...
We transferred to using new forum software at some point, and as a result, any links to threads in the old software stopped working. But seeing...
it means assuming no policies leave other than at the end of the three-year period of cover.
Variables are things that vary. Variables could be inputs to a model, or outputs from a model. Parameters are the things you set within the...
To be honest I can’t remember the prominence given to those topics in earlier questions. I suspect it will all depend on the relevance given the...
All past exams are freely available on the IFoA website. That wasn't the only time the topic has been examined, you'll find it elsewhere too. The...
For the interested students, the pros and cons of 'price-walking' were examined directly in Sept/Oct 2020's Subject SP8 and SA3 exams.
Grammar and spelling aren't important at all (except for Subject CP3) as long as the examiner can understand what you're saying.
correct
I don't think SA2 is different from any other exam, but one of my SA2 colleagues will undoubtedly correct me if I'm wrong! In marking schedules,...
Hi Utkarsh Your question relates to any of the later exams, not just SP8 and SA2. So I'll answer more generally. I'm not sure what you mean by...
The Glossary is saying that many people use 'provisions' and 'reserves' interchangeably. But that some people take reserves to mean something a...
No, the way we calculate reserves are quite different depending on the purpose. Explained further down that page of the solution. Tech reserves...
See the diagram on page 14 of Chapter 4, plus the supporting text over the following few pages. The easiest way to think of it is that technical...
Yes, some may think a question on this topic might be a bit 'raw'. Although I do recall, in September 2002's SA3 exam, a question all about a...
Hi CY You should always aim to write down a few more points (not lots) than required in any question, really, just in case some of the points you...
Not in any of the GI subjects, no. Haven't looked in others, eg health, life...
It's because you're using the same curve but applying it to inflated (or not) amounts. Effectively you've shifted the curve very slightly in one...
It's not that binary I'm afraid, and what counts as 'large' will obviously be different to every company. A small company might balk at 150k GBP...
Hi Jordan Yes, your understanding is correct. Note the first part of that last sentence '...the terms under which policies are written'. So the...
These are liability claims attaching at high levels, so we're talking life-threatening events here. These sorts of claims are notified quickly to...
Hi Sam Yes, additional capital strain, and also potentially higher premiums. So your understanding is correct. The point that the report is...
Again, it's really just naming convention. Incremental % developed is just the increase over the previous % developed. So for the first 'period'...
We can certainly suggest that to the IFoA for the future. Also, it might interest you to know that there's a cat modelling chapter in SA3, which...
That's an error in the examiners' solution. The Core Reading has since been changed (see formula 3.4 chpt 15 page 24), and ASET uses it correctly.
The material in that topic has hardly changed at all I'm afraid! You should be prepared to answer questions from any topic that stretch your...
The 2.03 is not half of 4.05, it's the loss recognised at the end of 2017 from the 2017 account. See the fourth line in the solution.
'loan relationships' and 'interest on loans' are something different. Think of loan relationships as gilts that the company owns. They have a...
Ah, I see what you mean now, yes. Perhaps it is a bit unlikely, yes, although you do get volatility, particularly if the business is cat exposed...
Spot on! The definition of burning cost includes the words 'historical claim', so sort of implies it's going to be experience rating. But more...
I'm not entirely sure which numbers you're comparing here - but anyway, bear in mind that theta is just a parameter that varies by risk, it's not...
I'm no legal expert, but this is my understanding. You need a culpable third party for subrogation. For example: Motor: let's say you have a...
Follow through marks are normally given (both in our Mocks/assignments, and in the actual exam), you are only penalised once for an error in a...
Not a lot of difference. A binding authority (binder) is a delegation of authority, and a lineslip is an example of a binder that is more...
The agg deductible wipes out the recovery on layer 1. So move your fifth bullet point above up to bullet point 3. 8.4 hits YP after the QS. Use...
I agree your figures, but I'm not sure what you're challenging here, as GNPI does indeed exclude acquisition costs (by definition)?
An exposure measure is an indicator of the amount of risk. The longer the policy, the more risk there is. The higher the sum insured the more...
Ah, well that's why, that's an old error that was changed a while ago. I strongly recommend you get the up to date material as much has changed...
It's the operator. I can't find any reference in the notes to the manufacturer under the marine and aviation liability section...have you got the...
In the second one, if you replace the word 'point' with 'time', you should now see the difference.
https://www.acted.co.uk/forums/index.php?threads/cp3-september-2018.15760/
What they're saying is that if it's only one property in a huge block that's hit the PML, then it may be a bit premature to stop writing business...
Driving history: You don't know, which is why they say 'may', not 'will'. Specific market: I think they're saying that if it's quite...
You can find more info on the differences between SCRs at Lloyd's here: https://www.rns-pdf.londonstockexchange.com/rns/6842H_1-2020-3-26.pdf...
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...
Hi Benoy This year’s SP7 exams appear to have been tricky in a number of places. However, it’s interesting to note that the SP8 and SA3 exams...
The SA3 syllabus allows the examiners to examine pretty much anything they like (within Syllabus Objective 5), whether or not it's covered...
