ST2 - reserving for Unit linked business

[kanch]

Core reading doesn't really talk about the Calculation and steps in setting
up a non unit reserve (The acted notes give an explanation) instead it just mention that a gross premium cashflow approach would be used. In the past exam questions they seem to ask you to describe how to determine a not unit reserve or a negative non unit reserve.

What I am concerned is whether this non unit reserve calculations/methods
(Numerical questions) are covered in CT 5 or is it possible to be tested at ST level?

I have covered these in the old syllabus 105 but under the new syllabus does it come under ST 2?

 

[Rosencruz]

Kanch, as far as my (failing) memory goes:
Transfers to the non-unit fund are covered in CT5
Reserving isn't if I remember rightly, this is reserved for ST2
Actuarial Funding, which was in 105, is now left until ST2
Hope this helps

 

[Robert Chadburn]

Hi Kanch
Though Actuarial funding (the principles involved) are in ST2, the numerical calculations are definitely not (the ST2 objectives have been altered to that effect for the 2007 exams).

For the non-unit reserves (positive and negative), this is one of those subjects that is covered in CT5 but is "assumed knowledge" for ST2. Again, I would think any complex numericals such as found in CT5 (or old 105) will not crop up in ST2 (they haven't so far, anyway.) But you might get a simple numerical - reason I say this is that the specimen exam for ST2 has got one in! I recommend you have a look at this, and you'll see it's quite similar to the kinds of examples shown in the reserving Chapters.

Hope this helps too.