Chapter 39 Flashcards
(2 cards)
1
Q
Reasons to monitor the experience
A
- To check whether the method and assumptions and model for financing benefits are appropriate
- To update them so they better reflect the expected future experience.
- to monitor any trends, especially adverse experience, and act on them.
- to provide information to manage IS and stakeholders and regulators.
2
Q
Considerations for monitoring the experience
A
- Whether the period under investigation was typical or adverse
- Whether it is likely representative of future experience
- Separate effects of trends. Cycles. Random variation.
- Compare the actual experience with industry assumptions, industry experience, standard tables, and indices for investments.
