Hi, In the Specimen Paper solutions (Pass), it says: "In terms of the gender mix by type of cover we currently experience the distribution shown below: Male Female PTP 57% 43% PFC 53% 47%" Can anyone explain to me how and where these % come from? Can't seem to find it? Thanks
Total premium for these two products is 3.25m. 54% comes from men. 33% of this is TP. Doing the same for women you can work out the proportion which relates to males for TP and what relates females. Then can do the same for comp. Although it’s a bit of a stretch expecting you to actually do that in the exam when you have so much other stuff to concern yourself with.
hi i do not understand how the below is calculated PTP 57% 43% PFC 53% 47%" can you provide the calculation? in addition, can you please provide the calculation for the below too? '"In terms of cost, men will benefit from a reduction whilst women face an increase. For a typical policyholder the amounts may be: Cost Cover type PTP PFC Revised typical premium $p.a. $415 $305 Female increase $p.a. $115 $105 Male saving $p.a. $85 $95 many thanks bobby
hi i have the answer for the first part of the Q: https://www.acted.co.uk/forums/index.php?threads/sample-exam-solution.17100/ just need help with the second part i.e. explanation/calculation of the below: '"In terms of cost, men will benefit from a reduction whilst women face an increase. For a typical policyholder the amounts may be: Cost - Cover type (PTP PFC) Revised typical premium $p.a. - ($415 $305) Female increase $p.a. - ($115 $105) Male saving $p.a. - ($85 $95) best wishes bobby
i have understood the first part of the Q but the percentages do not fit with the actual numbers - please see below: Speedy CoverAll Male Female 54% 46% gender mix 32 35 Average age $ 500 $ 300 Average third party premium $ 400 $ 200 Average fully comprehensive premium 33% 29% Third party policies as percent of total policies sold expected premiums 2017 (in $m) Third party 1.25 expected premiums 2017 (in $m) Fully Comprehensive 2.00 expected premiums 2017 (in $m) total 3.25 ABOVE - Total premium for these two products is 3.25m. = 3.25* .54 = male total = 1.76 = 3.25* .46 = female total = 1.50 [ = 3.25* .54 = male total = 1.76] * 33% = 0.58 [ = 3.25* .46 = female total = 1.50] * 29% = 0.43 0.58 + 0.43 NOT equal to expected premiums 2017 (in $m) Third party = 1.25 can you please clarify?
I know this post is a bit outdated, but I had the same question when working through the specimen paper. Here is my solution below (hope this will help those in the future with the same issue): Below is the information we need to calculate the distribution of Private Third Party insurance: The total premiums of all policies are 8.35m Gender mix for PTP insurance is 54% M and 46% F PTP as % of total policies sold are 33% M and 29% F From the answers above, it seems total policies sold have been confused with third party + fully comprehensive, which together are only 2 of the 5 policies sold The calculation for PTP: The premiums from PTP M are 33%*54%*8.35=1.48797m The premiums from PTP F are 29%*46%*8.35=1.11389m M = 1.48797/(1.48797+1.11389) = 57% F = 1.11389/2.60186 = 43% The calculation for the rest of the policies are: Male premiums are 54%*8.35=4.509m less PTP 4.509-1.48797=3.02103 Female premiums are 46%*8.35=3.841m less PTP 3.841-1.11389=2.72711 M = 3.02103/(3.02103+2.72711) = 53% F = 2.72711/5.74814 = 47% Note: they don't give enough information about private fully comprehensive as a percentage of total policies sold. Since these are the figures for the rest of the policies, we can assume that this split is the same across PFC (and Stereo/Vehicle contents/Commercial) To calculate the revised typical premium, the sample solution has provided calculations for PTP and PFC. We need to use the percentages calculated above of each gender mix to get an average. The steps are shown as follows: PTP costs $500 for M and $300 for F 500*57%+300*43% = 414 which is $415 rounded to the nearest $5 PFC costs $400 for M and $200 for F 400*53%+200*47% = 306 which is $305 rounded to the nearest $5 I hope this answers the question and provides any clarification for any future candidates working through the Specimen Paper in future sittings
