Financial Reporting

Question 1

What are risk-based capital techniques?

Question 2

What are active vs. passive approaches?

Question 3

What is the interplay between the strength of the supervisory reserves and the level of solvency capital required?

Question 4

What is the process of completing an actuarial valuation?

Question 5

What are statistical vs. case estimates?

Question 6

What are setting assumptions?

Question 7

Why is a consistent asset and liability value important?

Question 8

What is sensitivity analysis

Question 9

What are market consistent valuations?

Question 10

Why is GPPPV not used for ST policies?

Answer 10

• would need to calculate monthly approximations for mortality and morbidity, to capture how they change over the year
• these approximations are not usually accurate over such short terms
• these approximations are complicated to calculate
• reserve for ST policies tends to be quite small anyway so no need for very accurate reserve calculations