September 2012 q 7 (ii)

Discussion in 'CA1' started by Edwin, Apr 13, 2014.

  1. Edwin

    Edwin Member

    September 2011_PAPER 1, q 7 (ii)
    Hi, can someone kindly explain to me why with this question the solution doesn't focus on rating factors relating to the individual e.g (Age of policyholder, gender etc) as well as expenses of the product.

    I thought cost of benefits = EPV Benefits + EPV Expenses + Profit loading

    This is also seen in chapter 33 part 1;-

    Or is cost of benefits generally the risk premium?
     
    Last edited by a moderator: Apr 13, 2014
    Edwin, Apr 13, 2014
    #1
  2. Steve Hales

    Steve Hales ActEd Tutor Staff Member

    Assuming you're referring to September 2011, the question asks for a description of "how" the insurer analysed the mortality experience. The "how" here would point towards the monitoring process itself rather than the rating factors.
     
    Steve Hales, Apr 17, 2014
    #2

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