Data

Question 1

Methods for preventing errors: 5

Answer 1

1. Check digits
2. Data field integrity checks
3. Mandatory fields
4. Error reports
5. Minimum and maximum values

Question 2

Data requirements for claims records: 10

Answer 2

1. Unique claim identifier
2. Policy number
3. Details of claim
4. Status of present record
5. Control dates
6. Dates and amounts of payments
7. Payment type
8. Outstanding claims and movements
9. Currency
10. Rating factors

Question 3

Data requirements for policy records: 9

Answer 3

1. Unique policy identifier
2. Policyholder information
3. Risk definition and details of cover
4. Risk factors
5. Status of record
6. Control dates
7. Relevant amounts and currencies
8. Payment dates
9. Administrative details

Question 4

Reasons for reopened claims: 4

Answer 4

1. It may be purely due to the closure definition used by the insurer
2. It may be because further liability for payment, possibly of costs rather than of indemnity has come to light
3. The insurer has made some recovery against a third party involved
4. An error was made in closing the claim originally

Question 5

Elements to establish a good information system: 5

Answer 5

1. Consideration of the users’ requirements
2. Careful design of appropriate proposal and claim forms
3. Ensuring that features of premiums and clams can be recorded
4. Consideration of policy and claim information to be collected
5. Adequate training of staff

Question 6

Factors that influence the quality and quantity of data: 6

Answer 6

Between organisation:
1. The size and age of the company
2. The current data system in use, including the use of legacy systems, the integrity of the data systems
3. The management and staff responsible for collecting and maintaining data
4. The nature of the organisation, direct insurer vs reinsurer

Within organisations:
1. Depending on the distribution method of the business
2. Between the different classes of business

Question 7

The main users of data: 9

Answer 7

1. Senior management
2. Accounting
3. Underwriting
4. Claims
5. Marketing
6. Investment
7. Actuarial/statistical
8. Computing
9. Reinsurance

Question 8

Main uses of data: 12

Answer 8

1. Administration
2. Preparing accounts
3. Preparing statutory returns
4. Analysing performance
5. Informing investment strategy
6. Financial control and management information
7. Risk management
8. Reserving
9. Experience statistics
10. Premium rating and product costing
11. Marketing
12. Capital Modelling

Question 9

Reasons for heterogeneity in industry data 5

Answer 9

1. Companies operate in different geographical or socio-economic sections of the market
2. The policies sold by different companies are not identical
3. The companies will have different practices
4. The nature of the data stored by different companies will not always be the same
5. Coding used for the risk factors may vary from company to company

Question 10

Sources of data: 2

Answer 10

1. Internal data
2. External data from industry sources