Chapter 0: Introduction to general insurance

Question 1

Technical reserves may be split into:

Answer 1

• Past events
  o Outstanding claims reported
  o IBNR
  o Re-opened claims
  o Claims handling expenses
• Future events
  o UPR
  o AURR

Question 2

The size of the free reserves is an important determinant of:

Answer 2

• The amount of business the company can reasonably write
• The size of the risks written
• The amount of risk within the investment strategy
• The need for reinsurance