Staff-T1
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Probably means a real cash flow (i.e. there actually needs to be cash moving to the insurer and moving from the insurer)
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Not that I am aware of, no
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Your formula is not correct Equity(x) = Equity(x-1) + Net Income(x) + OCI(x) - Dividends (x) You wouldn't add your total AOCI to find the increase in equity in a current period. Just the OCI
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Yes!
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Yup
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I think so @graham
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@graham I have already changed the draft wiki
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Bulubala is correct
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I think it is not clarified properly that it should be reinsurance issued rather than held. This is referring to reinsurance that you sell rather than reinsurance that you purchased
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There actually isn't too much written about allocation of premiums - The only part which goes into detail about this is the fact that an insurer can choose to combine income and expense together in the financial statements or they can do an allocati…
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I believe you are looking at the unexpired coverage for insurance contracts issued and not the LRC in your first screenshot
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The CCIR encourages uniform practices in the industry through industry-wide rules as well as common teaching and testing materials for the licensing of agents
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Your LRC using PAA should be (UEP - DAC) here not LRC ex LC + LC. Also note, UEP - DAC = LRC ex LC LRC ex LC + LC = GMM LRC = PAA LRC, but only for onerous contracts. To find the loss component, you first calculate the GMM LRC and subtract it f…
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It's just saying if the stock market drop was a consequence of some event that existed before the calculation date, then the report should be updated as such
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For the first point, it is referring to changes in actuarial assumptions (i.e. a change in your ultimate Loss Ratio) Change in Time Value of money refers to changes in the discount rate
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I believe for the latter, it is more of referring to income taxes. Please refer to question 2.30 in the IC paper which provides a succinct explanation
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Generally yes because I do not think the CAS expects you to know any other cases beyond what is in the source
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Nope the GMA is the only method for calculating LIC
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yes
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This chapter is not focused on liability/loss recovery but more of on reinsurance in the IFRS17 context
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* No, you can also be onerous under the PAA method. You'd have to calculate your PAA excluding LC and add a LC to it. * It's one of the definitions. I'm not sure if there are any other definitions so I can't say it is the best ~
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Q1: What don't you understand about the statement? Q2: Why do you say it does not reconcile? The FCF here represents the LRC using the GMA method
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Yeah tbh I am not sure how it is gonna be handled. Knowing the CAS they'll probably do everything on the new standards and expect you to know how to calculate the MSA ratios on those new financial statements. It's unfair but the CAS is the CAS
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Should be
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Basically means you just recognize your expense as you earn revenue (i.e. as you earn your premium) rather than recognizing the full expense amount immediately
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yup that's right - I do FCTs once a year
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Yup this is right @graham
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Hi, Which BC are you referring to? I believe this is just a rehash of what is mentioned in the earlier paragraph: * The sum of capital instruments meeting the qualifying criteria under category B and category C will not exceed 40% of total …
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Yup @graham formula needs fixing there
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Yes, on initial glance when I read the paper I thought it was supposed to be LRC. But reading it closely in 4.2.2.2, unexpired coverage is actually LRC without the Risk Adjustment for GMM and some derivation from LRC for PAA that I don't want to wri…