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Reserving and Capital Requirements

Discussion in 'SP1' started by Jimmyjay78, Apr 1, 2018.

  1. Jimmyjay78

    Jimmyjay78 Member

    Hi, looking for some help on the following questions:

    1) April 2008 Q3 - capital requirements - is this question still relevant to the course?

    2) Sept 2009 Q3 - the solution has changed slightly since my Revision booklets were printed. Can you please explain the differences to the original solution to this question so I understand what the correct answer should be.

    3a) Oct13 Q5iii - the solution has changed slightly since my Revision booklets were printed. Can you please explain the differences to the original solution to this question so I understand what the correct answer should be.

    3b) Oct13 Q5iii - same question. The course notes detail different reserves for long term contract and short term contracts. This question asks about reserves for group IP cover with the solution including a mixture of both long term reserves and short term reserves. Can you please explain this and what the difference is between short term and long term reserves and what products each applies to. My original reading of the course led me to believe that short term reserves were for PMI with long term being for LTC/IP/CI....

    4) Sept 2009 Q2 - is this question still relevant to the course [calculation of Capital Requirement for Long Term Insurance]?

    5) April 2010 Q5iii - is this question still relevant to the course [contents included in parts of a management information report]?

    6) April 2014 Q32 - I found it very hard before looking at the answer to determine what this question was looking for and my attempt was pretty far off what the Revision booklet suggests. I looked at each product type individually whereas the answer considered the economy in a broader sense. Any commentary would be appreciated.
     
    Jimmyjay78, Apr 1, 2018
    #1
  2. Anna Walklate

    Anna Walklate ActEd Tutor Staff Member

    1) Yes.

    2) Without knowing which versions of what you are referring to, it's very hard to say. Revision notes are updated each year to reflect changes in Core Reading, and occasionally to try to "improve" solutions by making them more consistent with solutions to other questions or making them clearer.

    3a) As above.

    3b) Group IP insurance is a short-term product, so most of the reserves you need to explain are those in the short-term reserves section. However, given that claims can be paid for long durations, you also need to mention some of the long-term ones too!

    4) Do you mean September 2008 Q2? If so, yes, this sort of thing could still be asked.

    5) Yes.

    6) I'm not sure which question you mean. If it is April 2014 Q5 (which is Q22 in Revision Booklet 2), I think most people would agree that this is indeed a very hard question! The comments in our ASET solutions might help, but with such questions it's sometimes just a case of keeping calm and doing your best :)
     
    Anna Walklate, Apr 2, 2018
    #2

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