CH18 Multiple Risk Question

Discussion in 'SP8' started by Jun Wu, Apr 11, 2022.

  1. Jun Wu

    Jun Wu Active Member

    Dear All

    I hope you are well

    Have you seen/are there any question on calculating Bühlmann-Straub risk premium on multiple risks ?

    I have only seen questions on single risk - ie one portfolio, like page 39 of CH18 in past papers so far, while the formulae are set up for risk i (eg Xi=Si/Vi, represents the claims ratio for risk i), I thought we may get asked to find risk premium for risk 1,2,3,4, etc in the exam. Or may be there is no such expectation by examiner?

    Thanks!
    Jun
     
  2. Aman Sehra

    Aman Sehra Member

    Hi Jun,

    Given this model is in the core reading, the examiner may potentially ask you to use the Buhlmann Straub model for more than 1 risk.

    However, the examiner is also within limits to ask you about anything in the core reading!

    I hope that's ok, and apologies I can't give you a more substantial answer.

    Thanks
    Aman
    ActEd Tutor
     
    Jun Wu likes this.

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