Ch32: Policy data checks

Question 1

Consistency checks

Answer 1

• the average sum assured or premium for each class of business should be sensible and be consistent with the figure from the previous investigation
• the ratio of the basic sum assured to the premium should be sensible and consistent with the figure from the previous investigation
• the number of units purchased by premiums and encashed to pay benefits are consistent with the corresponding revenue account items
• a check that the internal unit movements are consistent with the surplus emerging during the year

Question 2

Simple data check procedures

Answer 2

• data movements (reconcile data between start and end period)
• consistency (check numbers are sensible)
• unusual values
• analysis of surplus