Does anyone know how much knowledge we can assume a finance director has? I'm refering to exam questions where it doesn't specify that the finance director is new to general insurance (which seems to be the case in a lot of questions). Can we assume that they know terms like IBNR, Latent Claims etc, and types of reinsurance? What about reserving methods such as Chain Ladder? Also, what about other board members, senior managers or chief executives? Thanks
In reality, they would know those things. But the Institute like to think that all non-actuaries are completely uninformed, and therefore in the exam it's probably better to assume that they don't.
