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2014 September past year

Discussion in 'SP2' started by Robert, Aug 16, 2022.

  1. Robert

    Robert Very Active Member

    A life insurance company has provided the following data on one of its conventional
    without profits protection products:
    Business in-force at year end Number of policies Total sum assured Total annual premium
    2012 10,014 100,000,129 10,000,121
    2013 11,255 122,550,011 13,755,005
    (i) Comment on whether the data appears to be accurate.

    Solutions:
    The average sum assured at YE 2012 = 9,986 and at YE 2013 = 10,888.
    The average premium at YE 2012 = 999 and at YE 2013 = 1,222.
    As at YE 2012 the premium to sum assured ratio is 0.1 and as at YE 2013 this
    ratio is 0.11.
    All of the above look to be material increases and warrant further
    investigation.

    may I ask how do we get 9986, 10888, 999 and 1222
     
    Robert, Aug 16, 2022
    #1
  2. Calm

    Calm Ton up Member

    Divide the number of policies or total sum assured by the business in force at their respective year end - when rounded to the nearest whole number, you get the average sum assured/premium as suggested in the solutions
     
    Calm, Aug 17, 2022
    #2

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