• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

SA3 Sept 2005 Q1(v)

S

SA3Musketeer

Member
Can anyone help me better understand the logic behind the determination of the frequency and severity in the last part of this question. I obviously agree with the need to adjust the frequency and severity of the data - I simply do not follow the logic shown in the examiner's report.
 
yes - tricky to follow what's going on!

All I can think of (and I haven't confirmed this with the examiners) is that
they want to allow for the fact that the large claim limit has not changed,
and so you would expect to see more claims of lesser amounts hitting this
definition over time. They've upped the frequency and lowered the severity
(in a rough and ready way) as a result. Personally, I think I would have
left them all the same (which I'd hope would also have scored marks, as long
as I stated what I was assuming).
 
You must log in or register to reply here.
Back
Top