2017 Sep Q3 - "Discuss the reasons why insurers have problems with the quality and quantity of internal data." I was wondering why "changes between historical and current period" was not included as one of the reasons that create data quality problems in the answer/marking scheme as Historical data becomes irrelevant due to changes such as changes in Claims handling, Underwriting practice, Regulation change, significant change in business mix, socio-economic environment, etc. Thanks in advance!
I think you could make an argument to include that point, if you gave the reasoning behind it (old data lacking relevance, as you said, and perhaps no sufficiently objective way to adjust the old data for the changes). In the general comments at the start of the examiners report it says "Candidates who give well-reasoned points, not in the marking schedule, are awarded marks for doing so."
Hi This question seems to be referring to section 3 of the Data chapter. That seems to be why the answer is tailored to that section. When I consider the temporal effects that you refer to they can either be implied eg the legacy system issue implies a change or be a trend effect on some of the points raised eg the subjectivity of underwriting has an issue now and also over time. Whilst I think you may get marks for raising the point I would be concerned about riding the point too far given the question seems to refer to a section of the core reading. Maybe the tutors or someone else may chime in too.
