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Thanks Lindsay that helps.
Thanks Trevor, that's very useful to know :)
Hello, As part of my preparation, I am attempting past question papers under SA2. I often see topics/terminology in the questions that I cannot...
Why are provisions or reserves required to determine surrender benefits? Per chapter 31
I am very surprised that you want to give up after failing by just 1-2 marks on the very first attempt! I was always encouraged when I got so...
Thanks, it is 10% annual but convertible half-yearly. I missed reading that small detail
Hello, It seems to me that the example on page 11, chapter 11 is using the wrong formula to determine the price of a 5-year zero coupon bond:...
In Chapter 3, when we mention sanctions under functions of regulator, do we mean sanctions on a company, on a country, or something else? Is there...
Hi Mark, Thanks for the reply. Sorry I don't think I was clear in my question about which example I didn't understand. When you wrote "For...
Hi Mark, Two questions: 1. In the example above, can you clarify how the assets and liabilities are moving in the same way? Which is the asset...
Hello, I am unable to understand the difference between pure matching and liability hedging. In both cases, we seem to be selecting assets to...
Thanks Helen!
Thanks Lindsay, that helps!
For the dividend discount model, why do we discount with the required rate of return, rather than some kind of risk-free rate of return?
In chapter 11 we state that "The real yield curve is a plot of real gross redemption yields on index-linked bonds against term to maturity." Why...
Thanks, that helps!
In chapter 10, we discuss how investment trust share prices might be discounted from NAV because of management expenses, marketability, etc. There...
Thanks Lindsay!
Practice Question 10.5 is "Suggest reasons why an investment in the XYZ property company might produce a higher rate of return than an investment...
Thank you both, that makes it very clear!
Why do we say that defined benefit schemes may be funded or unfunded, when there is a regulatory requirement to maintain a certain funding level?...
Why must embedded value basis be "best estimate"? I see in chapter 18 page 15 it is said that EV basis is more likely to be best estimate.
For annuity business, how does strenghtening mortality basis result in an increase in PVIF? Would we not be paying out more claims?
When talking about alterations in terms, what do we mean by "profit released"?
Chapter 17, flashcard 9 states that market-consistent investment rate can be risk-free rate, but volatility must be based on actual underlying...
Thanks Mark
Thanks, Mark
With regards to published accounts, what is exactly is meant by "true and fair view"? When would it be okay to not have a true and fair view?
CH17, flashcard 12 says that persistency assumptions are only needed if we are using cashflow method, and not formula method. But why is this so?...
Thank you Mark for the quick and easy explanation! You should ask them to put *this* in the core reading :)
I am revising chapter 13 using flashcards, and I can't understand how are internal unit linked funds different from regular unit-linked funds? Can...
The question concerns reinsurance premiums, but the answer seems to revolve reinsurance commission. Is this is an error in the flashcard, or am I...
Thanks again, Sarah :) I seem to have a lot of questions for you these days :)
In this flashcard, with regards to the first part of the question, I can't see any meaningful difference between the answers to the first two...
Thanks, Sarah, that helps :) So it looks like the steps listed are better suited to developed economies with relatively stable populations, and if...
For this method to estimate fund required for public healthcare, why is estimating population and workforce trends the 4th step, and not the 3rd?...
Yay, I get it!! Thanks :)
Thanks, Sarah, that helps
Thanks again, Sarah! That clears it up
Core reading (Ch3, pg 16), lists three ways to structure a death benefit - minimum pymt period, amortization of single premium, and capital...
Hello, With regards to the flashcard above, how can LTCI be structured as a short-term business? Isn't LTCI long-term by definition? Thanks,...
Thanks, Sarah, that helps. It seems to me that you are saying that calibration is essentially the process of setting assumptions that give us a...
Thanks, Sarah, that helps :)
Chapter 13, page 17: core reading text says "For without profits business, embedded value is effectively the release of any margins within the...
Hello, Could someone please explain stochastic model calibration (both risk-neutral and real-world), with examples? I see an example in the core...
Since most of the questions we write in this exam are essay type, and there is an expectation of neatness of handwriting in addition to the...
Thank you Sarah, that's very helpful :)
Why does chapter 28 look at persistency and renewals seperately? Aren't they the same thing?
Thanks for your helpful replies!
Hi everyone, Now, this may seem like a bit of a silly question at first. Reserves, as I understand, are supposed to be seen as liabilities. The...
Thanks to both of you. I think that really helps! Ian's explanation is so helpful I'm going to add it to my notes! Thanks again.
Could anyone explain the difference between UPR and URR with examples? I just can't seem to wrap my head around these ideas.
