Staff-T1

Comments

• Yes Net UW leverage does not include net liabilities. Net leverage does because it is defined as (NWP + Net Liabilities)/Equity

  in 2016 fall #22 Comment by Staff-T1 March 2
• NWP = DWP + AWP - CWP. GWP = DWP + AWP Hope that makes things clearer

  in fall 2019 #23 leverage Comment by Staff-T1 March 2
• 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…

  in CSM Question Comment by Staff-T1 March 1
• 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

  in Sample-18 Comment by Staff-T1 February 26
• There are changes constantly as sometimes battlecards and typos are fixed

  in update Comment by Staff-T1 February 26
• There are changes constantly as sometimes battlecards and typos are fixed

  in update Comment by Staff-T1 February 26
• There are changes constantly as sometimes battlecards and typos are fixed

  in update Comment by Staff-T1 February 26
• Yup that's correct

  in LRC PAA for onerous groups Comment by Staff-T1 February 26
• 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…

  in Sample-18 Comment by Staff-T1 February 24
• yeah it's just a typo lolol - Happens all the time with the CAS

  in Sample 9 Comment by Staff-T1 February 24
• 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…

  in illustrative scenarios Comment by Staff-T1 February 22
• It is one or the other, I've added the or to make it clearer

  in Section 4.4 - Identify a procedure for estimating timing of LRC Comment by Staff-T1 February 22
• Don't bother with issue year, unless they specifically ask for it (which they probably won't)

  in Excel appendix discounted CF Comment by Staff-T1 February 22
• 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)

  in how discount rates are selected when CF vary or not with returns on the underlying item Comment by Staff-T1 February 20
• * Generally, yes * Yes * Yes Always glad to help

  in Question 17 Clarification Comment by Staff-T1 February 20
• For LIC: Yes, because there is no CSM on the LIC

  in Is FCF = LIC? Comment by Staff-T1 February 20
• Yup I agree

  in Battlecard 14 Comment by Staff-T1 February 17
• 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.

  in sample-20 Comment by Staff-T1 February 17
• Thanks for pointing it out! Not sure what happened there lol

  in Typo in Excel summaries Comment by Staff-T1 February 17
• 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…

  in Operational Risk Calculation Comment by Staff-T1 February 17
• 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…

  in Comparison GMA and PAA page 36 Comment by Staff-T1 February 17
• 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…

  in Self Insured Retention Comment by Staff-T1 February 17
• "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)…

  in Question 17 Clarification Comment by Staff-T1 February 17
• * 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…

  in sample-20 Comment by Staff-T1 February 14
• Its 1.5 * mincapreq not capreq/1.5 in your denominator

  in sample-20 Comment by Staff-T1 February 14
• So that you can use PAA when it is not onerous as onerosity is not a permanent state

  in Appendix A step 2a Comment by Staff-T1 February 14
• Please see the screenshot below from page 19, second last bullet point

  in Appendix A Comment by Staff-T1 February 14
• You are not using brackets which is why it is confusing. 200% MCT Ratio = 2 * (CapAV/(1.5 * MinCapReq)) = (2/1.5) * (CapAv/MinCapReq). Write it out on a piece of paper, it will be clearer

  in sample-20 Comment by Staff-T1 February 14
• It's just a variation of the top-down approach and both those terms arbitrary. It's kind of line a linear regression approach to defining the ILP. These terms are just meant to characterize the relationship between the liquidity of the reference por…

  in combined approach - what the parameters mean Comment by Staff-T1 February 14
• CapAv / (CapReq / 1.5) = CapAv / CapReq * 1.5 this should be 1.5 * CapAv/ CapReq. Your algebra is incorrect. 1/(1/1.5) = 1.5

  in sample-20 Comment by Staff-T1 February 14
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