April 2017 Paper 2

[omurice]

Hi,

For the answers to Question 5(ii), seems like the question is seeking for issues in designing the protection scheme to protect policyholders of insolvent insurers, but seems like the answers are mainly focusing on how to avoid the risks (such as terminating term assurance contracts and not honoring the guarantees) instead of taking on the contracts and managing the risks on them. Would like to seek for some explanation on the thought process to answering this question if possible.

Thank you!

 

[Helen Evans]

Hi

I think the key issue is that the question does say 'provide a balance between the beneficiaries’ interests and the costs of the protection scheme' so the solution does have this focus on controlling the costs of the protection scheme rather than a focus solely on protecting policyholders. If the bit in bold was missing from the question I would expect the answer to be more strongly focused on meeting the needs of policyholders.

I hope this helps
Helen

 

[Anoushka]

Hi,
I have a doubt in answering this question - I found difficulty in understanding the Examiners Report. What exactly do we need to write? It would be helpful if I can get an answer to Question 5(ii) part (a) so I can form the answers to other parts as well.

Thanks!

 

[Aman Sehra]

Hi,
I have a doubt in answering this question - I found difficulty in understanding the Examiners Report. What exactly do we need to write? It would be helpful if I can get an answer to Question 5(ii) part (a) so I can form the answers to other parts as well.

Thanks!

Hi Anoushka,

Thanks for your post. I recommend purchasing the ASET product, from the ActEd website. This goes through the solutions, and explains the more tricky points, in some detail.

Note that this is different from the Examiner's Report from the IFoA website.

Does this help at all? If you already have the ActEd solutions, are there any specific parts of the solutions you are struggling with?

Thanks
Aman
ActEd Tutor