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Could you please kindly explain the difference between: Only extract the part of the large individual claims that are in excess of the threshold...
This answer I am putting down here is from Examiner's report: Under Mix assumptions How do you know that the driving history will even out over...
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...
Can someone let me know what Captalisation horizon means? Regards Adithyan
Hi! I want to know why in Paper 1 of Nov 2015, they look for an upper bound of 5%? I don't understand the intent behind this. Can someone help?...
I dont understand why in col 2 the formula if(rand()<p,payout,0) is used. I am unable to understand what is being done there. Why should rand() be...
Hi Sir! Thanks for your reply. I am actually unable to understand the part where V1 is found using the formula S0*PHI(d1)-Ke^-r(T-t)*PHI(d2)...
Hi! I agree that S0 is 1 (given in question). But Value of option @ time 1 is = S1 phi(d1) - Ke^-r(T-1)phi(d2). How can you use S0=1 value in...
Isn't V1 = S1*PHI(d1)-Ke^-r(T-t)*PHI(d2)? In this qn we dont have S1 and how can we substitute value of S0 in S1? Then why in revision notes it...
Can someone help me understand the how the differentiation is done?
Thank you very much! This is very helpful .
Thank you very much Anna! This was troubling me a lot.
I have a question with respect to (iii) part of the question. I would like to know as to why we aren't interpolating for this and instead only...
The booklet states that claim volatility for insurer decreases if retention increases. Wouldn't claim volatility increase with increase in...
Thank you Anna for a detailed reply. It was indeed very helpful! Sorry for the delay in my response.
At the outset I would like to thank you for taking so much of efforts to help me understand the concept. I am now able to get a better picture of...
Can I understand this in the most simplest of terms as increase in dividends reduces the capital value of share and hence value of put option...
Could you please help me understand as to why the price of portfolio B is S0? There is an income of c at t. Price of portfolio is the present...
Thanks a ton for an elaborate reply. Just a small quick question. If dividends increase do you mean put option price increases and hence one...
Hi! I am unable to understand why increase in dividends increases the value of put option. Pg13 Also with respect to the attached, I dont...
Thank you very much Anna. It has been very helpful!
Don't you call Log(St/Ss) as log return? Would you call Log St and Log Ss as log return each? Aren't St and Ss price of the stocks at time t and...
It follows by the independent increments property of Brownian motion that the log-returns, and hence the returns themselves, are independent over...
I have got all of mine!
Can you tell my why cX is N(a, c^2 b) and not N(ca, c^2 b)?
Can you help me understand why sigma*B(t) has N(0, sigma^2 * t) distribution? As per the 2nd file, I would like to know why there is no...
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Hi Valhalla! This course can give you exemptions from all subjects except, SA, CA2 and CT9. UK isn't in a position to employ foreigners and visa...
Can you help me understand this bit? Therefore \(\sigma B(t)\) has an expected value of zero and a variance of \(\sigma^2 t\)
Thanks a ton for your response. It is extremely helpful indeed!
The question is as below, I don't get the solution though: Suppose Investor A has a power utility function with r (gamma) = 1 , whilst Investor B...
There's a question on page 23 of chapter 2 on utilitlity theory where they want us to say if A or B is more risk averse. I didn't understand as...
Cass school
Thank you very much for your response Sir!
It would be helpful if ActEd tutors could provide an idea on the past papers that are relevant to the current CP2 paper. Past papers from which...
Hi! I have passed CA1,CA3,ST7, and ST8 from a UK univrsity accredited by IFOA. I am now applying for exemption from IAI. When I checked IAI...
Correct! All that I wanted to understand is why is IBNER development foreshortened when the columns are development reported quarters while I get...
Dear Sir, Thanks for your response. Let's assume the triangle to be incurred. Rows are accident quarter cohorts and columns are reported...
But I was told that this approach foreshortens the development of IBNER. Are you able to visualise this? Can one of the ActEd tutors help me out?...
Can someone help me please!
I would like to know what we would get when we subtract the last diagonal entries from ultimate when the we have Accident years cohorts and...
Thank you very much Sir! This is highly useful.
Dear Sir, Thank you very much for your prompt reply. I just wanted to have the following clarified: Do you mean to say that required capital...
I remember seeing in ActEd video that assets backing global provisions are for credit, operational and market risk. And then it goes ahead to say...
Is attempting questions for 80 to 82 marks a safe enough bet for CT exam?
Thanks for the prompt response! It was helpful indeed.
Can someone help me with this at the earliest? Please!
Are outwards Reinsurance reserve and net of reinsurance reserve different?
What is meant by inconsistencies in the treatment of gross and net claims estimates? (In page 11 of the chapter) Below is the answer for 16.3...
Thank you very much for your quick response!!! That makes it easier to remember
This is true only when all claims of previous years are paid using OCR of 2016 end right? Only then the claims incurred for 2017 would be equal to...
I want to know the logic behind this equation EARNED PREM = WRITTEN PREM - (CARRIED FORWARD UPR - BROUGHT FORWARD UPR)
I have the following questions pertaining to F-S approach: We don't take in to account the IBNR claim amounts in the severities (These are...
Thank you for the help!
This paragraph is from the page 12 of the chapter. PDF page number : 960 Firstly the model can report on each individual risk and subsets of...
Thank you very much for the response. They have been extremely helpful in my learning. For expanding or contracting portfolios, the capital...
Thanks a ton Mr. Hemant! Your answers have been extremely helpful!
Thank you Hemant for your time and response. Derive a gross distribution, and scale down the distribution such that the mean equals the net best...
Thank you very much Hemant! Your answer has been extremely helpful
I had been through chapter 21 (Capital modelling and allowance for diversification) in ST7. I have put the page no. and the paragraph from the...
Thank you very much for your response Pede!
We can use the following simple approaches to derive a reserve distribution net of reinsurance under non-proportional covers: • Derive a gross...
Can somebody please respond tot his question?
Developing individual losses and applying the reinsurance programmes to them We develop each individual loss to ultimate settled value. We run...
Hi, This is related to page 18 of the chapter 26 in ST7. I would like to know how the following ratios have been calculated in the page. It...
Then how is premium rating done at time t2 for a new rating factor that is added in t2 using the same rating factor basis as at t1 for a renewed...
Please help!
Page 34 chapter 19
Why is reinsurance commission only provided in proportional reinsurance? Solution 20.1 Commission will only apply if commission is payable to the...
Redesign rating tariffs – we estimate and recalculate premium rates on behalf of markets where the regulator decides the rates for certain...
Hi, [ATTACH] I want to know if the denominator in right hand side of the 2nd equation gives the premium at time to in terms of premium rate time...
Then could you please explain the sentences in bold in my first post? Because there it sounds like higher reserves need higher capital.
The resultant insurance capital (based on undiscounted reserves) could therefore be too high and the free capital too low. When the excess...
Could you please explain the following for me? In some cases, the data being projected may develop with a negative tail. In these situations, we...
Dear Sir/Ma'am, I don't get a hang of the answer for Q8 in ST7 (April 2017). I am unable to understand the distinction between (Have picked these...
Hi, I am quite confused about this topic. I want to know if URR is a notional reserve or is it actually a reserve that is held in real for...
I want to know as to what would happen if non-proportional reinsurance is written on underwriting year basis. Also are all reinsurance for...
Hi, I want to know the difference between stop-loss reinsurance and aggregate XL
Basically here the 4 years of warranty commences only after the t days time period gets over right? Could you please confirm this once for me? Thanks
I have got most parts of the question. I didn't get the following (1-AC)*p*12/15 Is the above expression for t<365? Why has it not been worked...
I am unable to understand the solution given for 14.30. I feel they have missed certain steps due to which I dont understand it.
1. I didn't understand this in page no. 68 of triangulation methods Whichever method is used there must be consistency between: • the assumption...
I want to know why claim numbers would develop faster than claim amount?
The success of the strategy is monitored by means of regular valuations. The valuation results will be compared with the projections from the...
I don't understand the meaning of bold words here: There may be difficulties here both with defining the markets involved and then obtaining...
I understand what interaction is. But I dont get what correlation is in GLM. Can someone clarify this for me. Thanks
I dont understand the meaning of mach assumptions. Would be helpful if you could help me understand using an example or put the same thing in more...
In pg 7 of valuation of individual investments: The counter argument is that using another valuation method in an attempt to identify the...
Hi! Kindly help me with these questions as they hinder my understanding. Thanks in advance for your time and efforts. What is the difference...
Thank you very much for your help! I have further questions In pg 7 of valuation of individual investments: The counter argument is that using...
This is in Pg 9 of Acted notes (Economic influences on investment markets) As well as affecting particular maturities, the choice of which bonds...
Hi acnf150!! I am planning to apply for ST0 exemption based on MSc dissertation that I did at Madras School of Economics in Chennai, India. I...
Hi moreoomph! I am planning to apply for ST0 exemption. I would like to know if you got the ST0 exemption by using your marksheet and Degree...
Can't we simply say repeat the loop m times as the way it is said in (iii) of April2012 q 10
I want to understand why we keep generating values from U(0,1) distribution to obtain values of y until we obtain Y m. We don't use these random...
September 2007, Q9 In a game of tennis, when the score is at “Deuce” the player winning the next point holds “Advantage”. If a player holding...
can someone explain me this problem?