Summary: Chapter headings cumulative 1 Flashcards
(23 cards)
Chapter 1
- Personal financial cycle
- The actuarial product cycle
- Group products
- Endowment assurance
- Features of the product
** Savings or protection( think surrender values as well)- also helps you to know whether longevity or mortality risk is important
** Needs of the consumer
** Capital requirements – Five Issues Surrounding Capital Requirements
** Risks for the insurer-( With mortality risk, sum at risk is NB)
** Variation of products and the needs of customers it meets
** Group version?
Chapter 2
* Whole life
* Savings or protection( think surrender values as well)- also helps you to know whether longevity or mortality risk is important
* Needs of the consumer
* Capital requirements – Five Issues Surrounding Capital Requirements
* Risks for the insurer-( With mortality risk, sum at risk is NB)
* Variation of products and the needs of customers it meets
* Group version?
- Term assurance
- Savings or protection( think surrender values as well)- also helps you to know whether longevity or mortality risk is important
- Needs of the consumer
- Capital requirements – Five Issues Surrounding Capital Requirements
* Risks for the insurer-( With mortality risk, sum at risk is NB) - Variation of products and the needs of customers it meets
- Group version?
* Renewable and convertible term assurance
* Savings or protection( think surrender values as well)- also helps you to know whether longevity or mortality risk is important
* Needs of the consumer
* Capital requirements – Five Issues Surrounding Capital Requirements
* Risks for the insurer-( With mortality risk, sum at risk is NB)
* Variation of products and the needs of customers it meets
* Group version?
Chapter 3
Immediate annuity
* Savings or protection( think surrender values as well)- also helps you to know whether longevity or mortality risk is important
* Needs of the consumer
* Capital requirements – Five Issues Surrounding Capital Requirements
* Risks for the insurer-( With mortality risk, sum at risk is NB)
* Variation of products and the needs of customers it meets
* Group version?
** Deferred annuity**
* Savings or protection( think surrender values as well)- also helps you to know whether longevity or mortality risk is important
* Needs of the consumer
* Capital requirements – Five Issues Surrounding Capital Requirements
* Risks for the insurer-( With mortality risk, sum at risk is NB)
* Variation of products and the needs of customers it meets
* Group version?
Chapter 4
For without profits, unit linked, index linked, without profits state:
* Features
* Needs of the consumer
* Capital Requirements
* Micro Risks for the insurer
* Risks of the product to the insured
Chapter 5
- Overview of the income protection product
- Meeting the needs of the policyholder (5)
○ Simplicity(1) vs complexity(3) of the product
t - Product features of the individual IP business
○ General policy conditions
○ Benefit definitions (amounts)
○ Benefit definitions (timing)
○ Claims definitions
○ Other Policy conditions
○ Product variation - With profits and unit-linked designs
- Group IP
- Risks to the insurer
- Capital requirements
Chapter 6
- Overview of CI
○ Definition and when CI is paid
○ CI vs IP as well as the case on indemnity
○ Standalone, rider or accelerated - Meeting customer needs (6)
○Simplicity(2) vs complexity in the product(4) - Conditions covered
○ Characteristics of insurable conditions (4)
○ Core and Additional conditions
○ Terminal illness
○ Children’s benefit
○ Total and permanent disability - Product variations
○ Tiered benefits
○ Guarantees, reviewability of premiums and benefits
○ New diseases and guaranteed insurability - Product structure
- Group CI
- Risks to the insurer
- Capital requirements
Chapter 7
- Overview of of the long term care
- Meeting the needs of the customer
- Product features of LTCI
○ Prefunded plans
○ Immediate needs plans - Pre-funded products
○ Product structures
○ Benefits
○ Method of funding
○ Claims definition - Product variations
○ Guaranteed terms
○ Indemnity vs cash benefits
○ Unit linked version - Immediate need solutions
- Risks to the insurer
- Capital requirements
Chapter 8
- Determining asset shares
○ Components of the asset share
○ Calculating the asset share
○ Asset share developments - Asset shares and surrender values
- Asset shares and bonus distribution
Chapter 16
- Internal unit linked fund and management box
- Basic equity principle of unit pricing
- Appropriation and expropriation prices
- “Offer basis” and “Bid basis”
- Offer and bid prices
Chapter 17
- Initial charges and new business strain for unit linked contracts
- Description of the technique of actuarial funding
○Aim of actuarial funding
○Conditions of actuarial funding
Chapter 20
- Financial requirements
- Onerousness of guarantees
- Regulation (RESTRICT) and reinsurance
- Consistency with other products
- Extent of cross subsides
- Distribution channel
- Competition
- Risk characteristics
- Admin systems and other expertise
- Marketing
- Profitability
- Sensitivity to profitability
Chapter 21
- Introduction
- Parameters that needs to be estimated (RIM PINT CREW)
- Assumptions as source of risk
- Basic methodology of setting assumptions
- Pricing life and health and care insurance contracts
- Mortality
- Morbidity
○ Disability incidences and duration for Income protection
○ Claim incidence for critical illness products
○ Claim incidences and amounts for long term care - Investment return
- Expenses and commission
- Dealing with the per policy expenses
- Inflation of expenses
- Persistency -withdrawal
- Margins
- Profit requirements
○ Risk discount rate
- Consistency
Chapter 22
- Valuing Life Insurance Contracts - Liabilities
- Overview
- Reserving basis compared to pricing basis
- Best estimate reserves
- Market-consistent valuations
- Valuing Life Insurance Contracts - Embedded value
- Calculation of the embedded value
- Appraisal Value
- Assumptions
- Allowing for risk
- What is the difference between a best estimate valuation and an embedded value?
- Consistency
- Consistency in setting a valuation basis
- Consistency in setting the embedded value basis
Chapter 23
- Background
- Gross Premium valuation method
○ Definition
○ Non-unit reserves
○ Negative non-unit reserves
○ Best estimate approach - holding negative reserves
○ Prudent approach while allowing for negative non-unit reserves
○ Features of the gross premium method - Net Premium valuation method
○ Definition
○ Features of the gross premium method - Principles of calculating reserves – DOG RID PRINCIPLES
Chapter 25
- Introduction
- Surrender values for conventional without profits contracts
- Principles for surrender values - PALACE DICE
- Methods of calculation
- Analysis of methods
- Calculation of values
o Choice of method
o Retention of profit
o Determining a basis for the retrospective value
o Determining a basis for the prospective value - Unit linked contracts
Chapter 26
- Introduction
- Alterations of conventional without profit contracts
- Principles for without profit business – A B SAFE
- Methods for calculation – See how these meet the principles
- Determining a basis for the equating policy values method
o Expected profit from altered without-profits and contracts
o Assumptions
o Selection - Unit linked contracts
Chapter 27
- Investment guarantees and how to price them
* Examples
* Implications of having guarantees on the insurance company
* Valuing the investment guarantees - Mortality guarantees and how to price them
* Examples
* Implications of placing the guarantees on the insurance company
Don’t forget- There is a difference between the factors affecting mortality options and the assumptions in costing options
- Learn the general workings of the two methods, you seem to mix them up
Chapter 28
- IP
o Multi-state
o Inception/disabled annuity - CI
o Accelarated
o Standalone
o How to deal with overlaps - LTCI
Chapter 29 - 30
- Main types of reinsurance contracts
- Reasons for reinsuring SAD LIFE
- Considerations before reinsuring
- Cost of reinsurance
- Retention limits
- Type of reinsurance
- Counter party risk
- Legal risk
- Examples
Chapter 31
- Managing risks
- Reasons for underwriting - SAFER
The process of underwriting
* Introduction
* Medical evidence
* Other evidence
* Financial underwriting
* Interpretation of the evidence
* Specification of the terms
* Claims underwriting
Determining the level of underwriting to use
* Factors to be considered in an analysis of appropriate underwriting to use
* Marketing
* Reinsurance terms
* Underwriting group cover
Chapter 32
- Data reconciliation checks
- Consistency checks
- Unusual values and spot checks
- Analysis of surplus and embedded value profit
Chapter 33
- Asset characteristics
- The principles of investment
- Asset – liability matching requirements
- Developing an appropriate strategy
Chapter 35
- Reasons for monitoring experience
- Data required
- Analysis of experience
- The analysis of surplus and profit
- Analysis on the embedded value
- Using the results
