September 2022 Question 5 ii)

Discussion in 'SP2' started by Muskan Hamirwasia, Mar 26, 2023.

  1. Muskan Hamirwasia

    Muskan Hamirwasia Keen member

    Hi,

    Could you help me understand how are the surrender rate assumptions have been determined in the part ii of this question?
     
  2. Mark Willder

    Mark Willder ActEd Tutor Staff Member

    Hi Muskan

    First of all we need to calculate the new average experience for the last three years for each band. Then consider how the experience has changed, whether a trend is emerging, and the need for margins.

    Best wishes

    Mark
     

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