sample-25

exam6againexam6again
in CIA.IFRS17-LRC

for the earned premium, we divide by 2, it isn't because policies are written uniformly throughout the year?

for expected LR, why expected LC per policy / premium per policy? LC is losses/exposure, expected LC per policy / premium becomes losses/(exposure*premium)?

Comments

  • Staff-T1Staff-T1

    Yes to your first question
    For your second question, exposure is assumed to be 1 here so it drops out since you are looking prospectively whether the group of contract will be onerous over the next year

  • CatherineGaoCatherineGao
    edited September 30

    Why ulae added at the end of calculation? I would calculate unpaid as "58M * (1+6%) - 30M" then discounted -> RA -> LIC. Answer key assuming no ULAE related to paid portion.......

  • Staff-T1Staff-T1
    Yup there's no ULAE related to the paid portion cause it would already have been incurred in the financials so no need to reserve for it
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