S
SV001
Member
Hi there. My questions are as follows:
1. Ch 20 page 4 and 5 - please explain the difference between determining margins analytically versus stochastically.
2. Ch 16 - group pricing. I understand the concept of burning cost as well as the formula for experience rating premiums. But how do these 2 concepts link with each other. For example in the experience rating formula the non-bookpremium is related to past experience (does this mean that past experience is adjusted to allow for expected changes in future for the group in particular) hence this non-bookpremium is basically the same as the burning cost calculation.
3. Ch 21 p24 (Reserving) - please explain the first sentence of the third last paragraph which starts with: "For without profits business,..."
4. When we calculate premiums/do profit testing, we have to allow for reserves. Do we allow for the statutory reserves including solvency margin even though the actual basis for premium or profit testing is best estimate or realistic?
Thanks!
Valerie
1. Ch 20 page 4 and 5 - please explain the difference between determining margins analytically versus stochastically.
2. Ch 16 - group pricing. I understand the concept of burning cost as well as the formula for experience rating premiums. But how do these 2 concepts link with each other. For example in the experience rating formula the non-bookpremium is related to past experience (does this mean that past experience is adjusted to allow for expected changes in future for the group in particular) hence this non-bookpremium is basically the same as the burning cost calculation.
3. Ch 21 p24 (Reserving) - please explain the first sentence of the third last paragraph which starts with: "For without profits business,..."
4. When we calculate premiums/do profit testing, we have to allow for reserves. Do we allow for the statutory reserves including solvency margin even though the actual basis for premium or profit testing is best estimate or realistic?
Thanks!
Valerie