Actuary@22
Ton up Member
Hi
I have the following doubts in ch 19:
2.On page 19, the question asks to 'State the main ways in which accumulating with-profits business differs from conventional with-profits business, under the following headings:
- calculation of asset shares
- competition
- sustainability'
Why is sustainability less important?
3.Pg 23 Section 6 Please explain how bonuses will be increased in the longer term in the below para.
"
Even if a company is closed to new with-profits business, projected volumes of other
products are relevant here. For example, high levels of profitable without-profits and/or
unit-linked business may produce capital strain in the short term but will potentially
increase bonuses in the longer term."
4.Section 8 I didnt understand at all what the below para is saying about mortality experience.
Mortality experience
"This is different to the ‘additions to benefits’ method where, for conventional with-profits polices,
the only likely allowance for difference in mortality between groups is made in the with-profits
premium rates. Any additional differences in mortality not allowed for in this way would be
treated as part of the pooling of risks."
I have the following doubts in ch 19:
2.On page 19, the question asks to 'State the main ways in which accumulating with-profits business differs from conventional with-profits business, under the following headings:
- calculation of asset shares
- competition
- sustainability'
Why is sustainability less important?
3.Pg 23 Section 6 Please explain how bonuses will be increased in the longer term in the below para.
"
Even if a company is closed to new with-profits business, projected volumes of other
products are relevant here. For example, high levels of profitable without-profits and/or
unit-linked business may produce capital strain in the short term but will potentially
increase bonuses in the longer term."
4.Section 8 I didnt understand at all what the below para is saying about mortality experience.
Mortality experience
"This is different to the ‘additions to benefits’ method where, for conventional with-profits polices,
the only likely allowance for difference in mortality between groups is made in the with-profits
premium rates. Any additional differences in mortality not allowed for in this way would be
treated as part of the pooling of risks."