appendices of CIA Duration

lawtsmlawtsm
in CIA.Duration

Is Appendix B of ''CIA Duration'' based on the old educational note (Discounting and Cash Flow Considerations for P&C Insurers) that is no longer in the syllabus? Can we then ignore Appendix B?

Comments

  • grahamgraham

    Actually, I think the whole reading is no longer relevant although the CAS made no mention of this in the change memo. I have written to the exam committee asking whether the reading should be removed entirely because it refers to both the old MfAD reading and the old premium liabilities reading (which have been removed.)

    It sometimes take a while for them to answer but you can leave this reading until later.

    Actually, of the the top 6 readings in the ranking table for 2022-Spring, 5 are either being changed or removed so it's hard to know where to even start studying. I would probably start with the second row in the 2022-Spring ranking table, or maybe the IFRS 17 material. But note that the CIA.IFRS17 reading is also being removed and replaced with a totally new IFRS 17 textbook. None of this is available yet. I really hope the CAS publishes the official syllabus soon so we can begin writing content for the new and modified readings and candidates can get going on their studying.

  • thesuperactuarythesuperactuary

    How does Duration is calculated under IFRS 17? - Which (at least) potentially be used under MCT Interest Rates CapReq calculation?

  • Staff-T1Staff-T1
    edited July 2022

    It would be the same as before - Calculate the duration of your LIC and LRC

  • bicbicbicbic

    Is this duration reading still relevant to Fall 2022 sitting?

  • Staff-T1Staff-T1

    No it is not

  • thesuperactuarythesuperactuary

    For duration of LRC, do i need o make adjustment to average future accident date (similar to premium liability as before)? - also In LRC Excel, they do mention something about to adjust for future accident date, but i don't understand the tab where they derived it using parallelogram

  • Staff-T1Staff-T1

    I don't think you would need to know how to derive what they have in the Excel parallelogram. The payment pattern for LRC should be given to you. It is hard to tell since it will be the first time they are testing IFRS17

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