Staff-T1
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Case 1: Yes Case 2: No reduction to capital available and yes you are correct wrt the capital required for unregistered reinsurance
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If you only use one of PAA and GMM then the column corresponding to the method that is not used will just have an AIC of 0
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Total Investment income includes realized gains. For NI, you are not given all the components here which is why you can't directly derive net income from the information provided. I think that will address most of your questions. You are double cou…
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I actually sat for 6C in fall 2018 I don't remember the paper, it has probably been removed as it was referring to an old article but I believe harris tort covers trends in tort and possibly reform
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Usually it would be pretty obvious (i.e. they will specifically call out to use issue year). Otherwise you will be fine to just use AY if nothing is said.
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1) Nothing changes. Just use the same formula if both PAA LRC and FCF are positive 2) I'm not sure what you mean by "combining both". The PAA LRC is the PAA LRC and FCF is basically the GMA LRC
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That's right
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yup I meant half in 2021 and half in 2022
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Steps D and E are basically saying take |A - B + C| since they are repeating the steps twice. C is irrelevant because they never test on derivatives. It's not possible to calculate the duration of derivatives by hand so the point is moot as it won't…
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Both the model solution and the Battleact commentary includes the RA. Double check the Excel formulas
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That's to find the minimum capital required. Your CapReq is just 1.5X Min Cap Req
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1) When you reach year-end, you would roll-forward your CSM: * You would unwind a portion of the discount which increases the CSM, while reducing the CSM for service provided during the period. * Actual experience that differs from expectation…
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You are allocating the cash flows to issue years in step 2. Think of it this way: For claims in AY 2022, half of them will be for policies issued in 2021 and half will be from policies issued in 2022 on average, assuming uniform writing of premium. …
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1) The PAA LRC excl LC is simply UEP - DAC. If DAC is > UEP, then it will be negative. I suggest going through the sample LRC Excel provided by the CAS to view his 2) I don't really understand your question so you may need to rephrase it. H…
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* Yes, the margin for unregistered reinsurance is a component of insurance risk -> But the insurance risk component is usually split out into its subcategories * You only apply a deduction if this amount is greater than 0. It's highlighted in t…
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I'll get back to you later this week as I'm travelling for work
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I'm travelling for work and will get back to you sometime later this week
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I'm travelling for work and don't have access to my computer so I'll get back to this when I'm back later this week
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They just basically do not want insurers to grow too quickly and adding capital is a way to penalize for it and stop insurers from growing too quickly without capital to support it. As to why 20%, that is arbitrarily determined by OSFI
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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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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…