Utility Function

Discussion in 'CB2' started by Srijana Raghunath, May 18, 2019.

  1. Are calculating expected utility functions and premiums etc still there in the new syllabus? There are no practice questions given in the study material.
     
  2. Gresham Arnold

    Gresham Arnold ActEd Tutor Staff Member

    Hi Srijana

    The IFoA's CT7 course contained some Core Reading written by the Profession on calculating premiums for insurance given a utility function eg the maximum premium an individual would be willing to pay and the minimum premium an insurer would be willing to accept.

    This Core Reading is not in the IFoA's CB2 course, so I wouldn't expect any questions on this now and as you say, there are no questions on this in our practice questions.

    The textbook for CB2 still contains quite a lot of material on utility and also some new material eg on indifference curves. So utility as a concept is still very testable.

    I hope that helps

    Gresham
     

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