Staff-TS
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Just to clarify for everyone reading, scenario testing and sensitivity testing are two different things. * Scenario testing checks what happens to results when you test a full story or situation with several changes at once. * Sensitivity test…
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I had to do a google search, which shows that the calculations are more involved than that. AgriStability provided financial assistance when a producer’s current year margin (allowable income minus allowable expenses) fell below 70% of their histori…
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Correct. “Less” in this context just means subtraction - you’re not ignoring depreciation, you’re subtracting it to reflect the current book value of the asset.
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For FSCO.PPA, it mentions that when performing an indication, direct losses (i.e., prior to any reinsurance transactions) should be the basis for ratemaking. Similarly, premium metrics should be used without consideration for reinsurance. So indicat…
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Premium adequacy and the protection of policyholders typically falls under Provincial authority. More specifically, the insurance / utility / regulatory boards in each province oversee rate adequacy and fairness. I think the point here is moreso …
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Premium adequacy and the protection of policyholders typically falls under Provincial authority. More specifically, the insurance / utility / regulatory boards in each province oversee rate adequacy and fairness. I think the point here is moreso …
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The fund would be comprised of money coming from producers, the provincial government, and the federal government. Not quite. For all base & adverse scenarios: * calculate the 95th percentile of the fund balance at the end of the 6th …
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* A 0.998 percentile means there's a 0.2% chance that the loss will exceed that value. * A 1-in-500 PML means you're looking for the loss level that is only exceeded once every 500 years (or 1 out of 500 events). 1− (1/Return Period) = 0.998
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No. Set-in-advance terms (e.g., fixed premium schedules) are not inherently risk-limiting. They are contractual terms, and only those that limit the reinsurer's potential for loss are risk-limiting features. By contrast, loss ratio caps, aggregate l…
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I will get to these in just a couple hours!
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Are you asking about the participation ratio split between FARM and RSP? For RSP, the source states: * The PR is determined using a proportion of their total voluntary PPA, non-fleet, TPL direct EE that is not ceded to a risk sharing pool fo…
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I'm not familiar with that case and suggest focusing on what's specifically mentioned in the syllabus and BattleActs Wiki. The Insurance Reference Case (1916) is referenced there, which may or may not be what your searching dug up. There are many…
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* Yes. Since the company has gone insolvent, they will no longer be able to provide coverage and the policyholder is returned 70% of the unearned premium. * In this example, the policyholder had been advanced $300,350. The PACICC receives $350,00…
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Yes, I have yet to fix the issue with these questions. All issues identified above will still be present. I can notify this thread when they have been corrected, if you would like.
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Sorry for missing this @lukia6c25sp. The distinction between federal and provincial regulation and legislation in Canada isn't always clear-cut, as the two levels of government often have interrelated responsibilities when it comes to insurance. …
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I would like to precede my answer by saying that BK.Reins (Blanchard and Klann) is no longer included in the syllabus. Looking at gross losses, which are the amounts before any reinsurance is applied, gives a much clearer view of the actual risk.…
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* Minor Injury Cap: Exactly right! * Minor Injury Cap: Yes, medical injury benefits and rehabilitation. * Non-pecuniary Cap: Exactly right! * For catastrophic injuries, the combined cap for medical, rehabilitation, and attendant care benefits is …
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Both the CIA and Freihaut papers stress the importance of considering the full economic substance of a reinsurance agreement. The CIA states that all written and verbal side agreements must be included in the risk transfer assessment, while the Frei…
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The source states "... the task force has identified the following four key principles that provide a framework for risk transfer and risk transfer assessment" (page 11). Although the introduction paragraph (page 1) specifically states "risk transfe…
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Hello, the links that I just tested are working for me. Are there any in particular you can give me to test? Additionally, you could try using a different browser.
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This is great! @graham
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The solution looks correct to me, it's just using the limits in effect as of 2014. The limits are subject to review every so often by the PACICC, and have changed many times since 2014! The caps you have listed are in effect as of now, and will b…
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Yes! You can see this noted in the BCAR.Cdn wiki, right above the battle table.
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Excellent question. The source material on this subject is quite vague, and I can't immediately find an answer on their website. As a result, I would not think this is testable. I can also imagine that every insolvency is different, and may ne…
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* Your understanding is correct. * Your understanding here is also correct!
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I couldn't find any references to COVID in the 2023 document that's currently on the syllabus. Although there are two links at the end that appear to reference COVID-related material, both are broken. I recommend sticking closely to the official …
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I developed these problems, and a colleague recently pointed out the same things to me. The point of the question was to illustrate the way money flows in solvency scenarios. Unfortunately, the way this is executed needs some work, which I will b…
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The PR (participation ratio) is PR = Co.EE(not ceded) / Prov.EE(not ceded). This means that when you calculate the PR for every participating insurer in the jurisdiction, sum(all PRs) = 1. Although intuitive, I wanted to make sure this was stated. …
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To add on to Staff-T1's real-life experience, here is what I understand purely from the material @CatherineGao: In general, there needs to be timing risk or U/W risk for risk transfer to have occurred. I think an example of eliminating timing ris…