Reasons for using reinsurance

Discussion in 'SP7' started by mattt78, Mar 30, 2011.

  1. mattt78

    mattt78 Member

    ST7 Chapter 4 lists 11 reasons for purchasing reinsurance.

    Chapter 22 (section 3.1) gives a separate list of 10 reasons for purchasing reinsurance. However, its quite different from that given in chapter 4!

    If there is an exam question asking to give reasons for purchasing reinsurance, which list should I be giving?

    I'm guessing the marking schedule would be structured around the reasons listed in chapter 4, as this is core reading, so I'm going to focus on this. Is that sensible?

    (If so, Acted are really not helping by giving a different list! It feels alot like different people are writing different chapters without anyone making sure they're consistent.)
     
    Last edited by a moderator: Mar 31, 2011
    mattt78, Mar 30, 2011
    #1
  2. Katherine Young

    Katherine Young ActEd Tutor Staff Member

    Dear Matt78,

    We're sorry you don't find the Course Notes very helpful. The reason for our repeated discussion of the topic in Chapter 22 is to remind students of some of the key ideas before going on to apply them to specific scenarios. Certainly however we do listen to feedback about our products and we can try to take your comments into account in future editions.

    If an exam question asks for the reasons for purchasing reinsurance (and this has indeed been asked in the past), then I think all of the points would score marks. I'd probably start with the Core Reading points, but the examiners have awarded marks in the past for many more ideas than are given in Chapter 4. Unfortunately though, they have not always been consistent in their answers so when in doubt I wouldn't just stop at the Core Reading, but generate more ideas according to the number of marks available.

    I hope this helps!

    Kind regards,

    Katherine Young (ST7 tutor).
     
    Katherine Young, Mar 31, 2011
    #2
  3. mattt78

    mattt78 Member

    ST7 reasons for RI

    fair enough, thanks for the reply

    for what its worth, I think the acted list is much better - the core reading list is pretty muddled - their categories seem to overlap alot, so its a bit confusing to follow.
     
    mattt78, Mar 31, 2011
    #3

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