Staff-T1
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The second formula should be the one that is correct. Yes, it simplifies to UEP-DAC because we usually don't assume that there are any receivables for most questions. No discounting for the PAA LRC
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No, it would be < 300% for Net UW leverage
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Let me double check and get back to you
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Sorry which file are you referring to? This is not one of the sample questions
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In this file: CIA.IFRS17-LRC_(060)_practice_LRC_PAA_v3.xlsx, you are calculating the PAA estimate of the LRC while in the sample file row 93, that is the GMA estimate of the LRC. They are different things. You would consider it in the GMA estimate b…
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Because GWP is by definition the premium before any cession to reinsurers. Assumed premiums are the premiums that you receive from other insurers (This could be through the writing of reinsurance contracts or through industry pools like the RSP). Ce…
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Yes Net UW leverage does not include net liabilities. Net leverage does because it is defined as (NWP + Net Liabilities)/Equity
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NWP = DWP + AWP - CWP. GWP = DWP + AWP Hope that makes things clearer
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I think there are a couple of problems here: * PV(PVCF) -> What does this mean? Present value of the present value of future cash flows? * The RA is part of he PVCF * CSM is just meant to reflect future profit, or the excess of cash inflow…
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For @sdeibert : It is always 1/3 for all years so there is no "+ start of current year No problem @coco91 They are not interchangeable no, they are completely different things
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There are changes constantly as sometimes battlecards and typos are fixed
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There are changes constantly as sometimes battlecards and typos are fixed
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There are changes constantly as sometimes battlecards and typos are fixed
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Yup that's correct
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You can't calculate the PAA directly here as you do not have the deferred acquisition costs. You would also need the undiscounted premiums receivable. PAA = Prem Received - Earned Premium + Prem Receivable - DAC Most of the time this simplifi…
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yeah it's just a typo lolol - Happens all the time with the CAS
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Scenario 1 - 2022YE Environment Constant Projection: * A: When real rates are negative, you are adding a strictly negative number to a positive number (2%). Over time, your URFR will decrease as more negative observations are added to the EMA a…
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It is one or the other, I've added the or to make it clearer
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Don't bother with issue year, unless they specifically ask for it (which they probably won't)
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I think the current battlecard is fine. It is not referring to the bottom up approach specifically, but more the general approach to determining discount rates ( By adjusting for liquidity)
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* Generally, yes * Yes * Yes Always glad to help
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For LIC: Yes, because there is no CSM on the LIC
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Yup I agree
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a 200% MCT ratio does not depend on your own capital. It is a fixed number. So is your minimum capital required. You'll also notice that nowhere in the question is capital available provided and that is because you do not need it.
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Thanks for pointing it out! Not sure what happened there lol
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No, you should use written premium if that is the case. Direct premium more closely ties to written premium. Direct premium is all the premium you have written, not including those premiums assumed through reinsurance from other insurers or reinsure…
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This is mainly meant to help with conceptualizing the differences between PAA and GMM. But yes, if you are onerous under PAA you obviously do not have a CSM (more nuance below). What's most important to remember is that if you are onerous under PA…
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I guess you can think of it as a deductible with different terminologies. But there are some small differences. Let's say an insured has a $100K SIR/Deductible and a 1M liability policy. Under a SIR: * If a claim is $80,000, the insured p…
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"UEP = Direct UEP - Premium Receivable --- this is because we are only concerned with UEP for policies that are written AND active, and NOT concerned with written but not yet active (these premiums would be included in the premium receivable amount)…
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* What you want is 2*MinCapReq * You are provided CapReq = 1.5*MinCapReq. * In Excel, you are provided CapReq. * You divide CapReq by 1.5 to get MinCapRequired. * You then multiply that by 2 to get an MCT ratio of 200% I realised what the is…