Staff-T1
About
- Username
- Staff-T1
- Joined
- Visits
- 2,786
- Last Active
- Roles
- Administrator
Comments
-
No, neither of them can be used as a discount rate under IFRS17. Remember, you either need to use the top-down, bottom-up or hybrid approach to set discount rates. To do this, you need a risk-free curve + a reference portfolio (CIA FIERA curves can …
-
Estimate of future cash flows = Future cash inflows - Future cash outflows. So you would have to subtract the RA from your second formula
-
Hi, In each of the years 1998, 1999 and 2000 a special levy was made on companies to establish a Compensation Fund of approximately $30 million. This fund has never been used and it sits at around 60M right now. The purpose is to provide initial …
-
Hi, You are correct on your first point - PACICC can borrow from the compensation fund. This is done to delay implementing an assessment until it is better able to estimate its exposure. It's not really about cost reductions. Indeed levies and…
-
Yes, the undiscounted LR is different from the net LR. There's no discounting and PFADs for the undiscounted LR - It's just the ultimate incurred/ EP
-
Yes for sure. In Ontario for example, PD is lumped together with Bodily Injury. You have both TPL-PD and DCPD
-
This question is outdated because the information is given in a format from an outdated version of the annual statement @ThrowGrow I was looking at the wrong question earlier
-
I believe we are also doing an off-balance in Fall 2015 q#1b by multiplying by 1 and dividing by 0.97 in column 6.
-
I think there's some inconsistency with the way FCF is defined in the material as Graham alluded to in one of the prior IFRS questions. But for me, I think of it this way: Just make sure your cash inflows and outflows are all the same sign. It's …
-
It's just because if you are non-onerous, then you are a profitable contract. Being profitable means your FCF is < 0. The CSM is set equal to -FCF which means your LRC = FCF + (-FCF) = 0
-
Quoting the Stress Testing material: Senior management is accountable for the program’s implementation, management and oversight and for ensuring that the institution has adequate plans to deal with remote but plausible stress scenarios For the …
-
It is similar. The key difference is that FARM is for uninsurable risks whereas the RSP is for risks that meet the UW criteria for a company, but are at a higher risk of losses. I think it's because if you have completely uninsurable risk - Say a ri…
-
You've brought up a good point and you are right - FARM is indeed administered by servicing carriers under FA. However, in the Dutil paper, it is mentioned that FARM losses are pooled and allocated back to all companies writing Auto insurance in tha…
-
Yeah, I think it's a typo. Graham's final answer is -7700*0.71 which is what you have!
-
Quoting the text for the pure market solution: "In terms of optimal compensation, this scheme has the potential to provide superior indemnification for the insured, though it falls short for the uninsured and most vulnerable" I think this goes b…
-
So I've spent some time reading the paper and I think there is some overlap between the inclusivity and affordability points - If premiums are too expensive then of course you are not inclusive. I wouldn't say they are mutually exclusive points. …
-
Yeah I think so (levees as in dikes). It's not related to financial levies
-
Hi, You are right, they definitely should be equal! You can see the following in q16: https://www.casact.org/sites/default/files/2021-02/admissions_studytools_exam6c_f18-6c.pdf In the balance sheet (4477-1760) = IBNR from AY 2016 (1517 + 1200).…
-
Yeah it should be a "-" Good catch! @graham
-
Generally, when we want to calculate the ERD, we would not have enough data. Following that, when we lack data, we rely on Monte-Carlo simulation methods to come up with a range of possible scenarios given some prior assumptions. With these simulate…
-
Discount Rates: The rates that we will use to discount our LRC and LIC. Generally calculated using a reference portfolio and one of the top-down, bottom-up or hybrid approach. Current interest rates: The overnight rate target set by the Bank of C…
-
Seasonality: Consider catastrophe reinsurance on a book of business in Florida. We know Hurricane season is in June - November. The release of risk to the reinsurer is not the same from Dec - June vs June - November. This is because June - Novembe…
-
Hi, Let's assume we will write 2 contracts this year, one in March and one in September just for simplicity's sake. Assume: * Each contract has a premium of $100 * Expenses and Losses of $40 * Reinsurance recovery of $20 per contract * Annu…
-
You can find the official explanation here: https://decisions.scc-csc.ca/scc-csc/scc-csc/en/item/5846/index.do Basically: * It does not relate to interprovincial trade and commerce * The fact that CIC is a federally regulated company does n…
-
I believe in the earlier prior approval battle card, it is mentioned that FA uses prior approval so I would say that they would not be able to proceed with file and use
-
Risk-Based deductible here probably just means assigning a higher deductible to riskier risks to encourage them to implement loss control measures
-
Yes, you are correct but I have just one correction - Point 4 would not necessarily be 1%. 1% is provided in the case study in the educational note but this threshold will vary on a company to company basis
-
Individual liability just means the employer is self-insured. They pay for sicknesses and accidents of their employees. Under collective liability, to put it simply, groups of employers are divided into industry classes where they each contribute…
-
I believe it refers to the fact that in modern days, we are more accepting of people with disabilities and would want to provide better accommodation for them. Removing the cap allows for them to receive greater payments above 100K which helps them …
-
It doesn't say in the wiki that its not an issue for public insurance no? You can be public and voluntary and suffer from similar issues - Although the government probably has more leeway in terms of running a deficit with their flood program. I be…