Difference between revisions of "KPMG.RegOv"

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There are a fair number of BattleCards in the quiz because but they are mostly recent exam problems. They are all based on a just a few simple ideas.
 
There are a fair number of BattleCards in the quiz because but they are mostly recent exam problems. They are all based on a just a few simple ideas.
  
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| Note that on p26 of this reading, they list some rules for <u>simplified filing guidelines in Ontario</u>. '''These guidelines are OUT OF DATE, and directly contradict information from''' [[FSCO.PPA]]. This KPMG paper was written in 2012, and the simplified guidelines have changed. (''See [[FSCO.PPA]] for the updated guidelines.'') It's things like this that make we want to tear my hair out!
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* Page 26 of the source text lists rules for <u>simplified filing guidelines in Ontario</u>. These guidelines are OUT OF DATE, and directly contradict information from [[FSCO.PPA]]. This KPMG paper was written in 2012, and the simplified guidelines have changed. (''See [[FSCO.PPA]] for the updated guidelines.'')
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| Note also that on page 21 and page 30 of this 2012 reading, Alberta rate regulation is listed as being a combination of government-mandated and file & use. This is outdated as new regulations were introduced in 2014. There is a forum thread on that topic here: [https://www.battleactsmain.ca/vanillaforum/discussion/51/alberta-file-and-use-or-prior-approval#latest Alberta rate regulation] ''(Thanks to user '''srivard23''' for noticing this!)''
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* Page 21 and 30 of the source text lists Alberta rate regulation as being a combination of government-mandated and file & use. This is outdated as new regulations were introduced in 2014. There is a forum thread on that topic here: [https://www.battleactsmain.ca/vanillaforum/discussion/51/alberta-file-and-use-or-prior-approval#latest Alberta rate regulation].
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[https://battleactsmain.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=KPMG&suffix=RegOv&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=1<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 1]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>
 
[https://battleactsmain.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=KPMG&suffix=RegOv&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=1<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 1]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>
  

Revision as of 14:42, 1 February 2021

Updated 2021.Spring:   Includes a few important changes.

Reading: KPMG, “Research Report – Best Practices for Actuarial Involvement in the Regulatory Oversight of Property and Casualty Insurance Rates,” December 2012, pp. 21-31 except references to the Ontario simplified guidelines.

CAS Abbreviation: KPMG Regulatory Oversight (Study Kit)

  Forum

Pop Quiz

Suppose there is an auto insurer in New Brunswick called Accidents R Us. Here is some data for the risk-sharing pool in New Brunswick:

Item Accidents R Us NB Total
EE(not ceded) 2,800 15,000
EE(ceded) 110 1,000

Calculate the PR (Participation Ratio) for Accidents R Us. (This is from the reading Dutil.FA)

Study Tips

BattleTable

Based on past exams, the main things you need to know (in rough order of importance) are:

  • identify & describe the different types of rate regulation (prior approval, file & use, use & file,...)
  • provincial examples of each type

Top Questions ← Questions you absolutely need to know!

 Outdated   → questions highlighted in orange are outdated because they are from material no longer on the syllabus

reference part (a) part (b) part (c) part (d)
E (2019.Spring #2) provincial auto regs
- BC rate change 		provincial auto regs
- NS rate change 		provincial auto regs
- QC rate change 		provincial auto regs
- AB: auto ins for TNCs
E (2018.Fall #3) rate regulation:
- types & examples 		flex rating:
- advantages
E (2017.Spring #3) which is faster:
- file & use
- prior approval 		which is faster:
- open competition
- prior approval 		which is faster:
- file & use
- use & file
E (2016.Fall #4) rate regulation:
- types & examples 		simplified guidelines:
- see FSCO.PPA
E (2015.Spring #3) rate regulation:
- types & examples
E (2012.Fall #4) rate regulation:
- types 		rate regulation:
- switching types

In Plain English!

This is a pretty easy reading to study and the wiki article is short because the BattleCards tell you everything you need to know. There are just 2 main things:

  1. Types and sub-types of rate regulation: ACM
    ACTIVE (2):
       - government mandated (Alberta GRID, BC)
       - prior approval (Ontario major filings)
    MODERATE (3):
       - file & use (PEI)
       - use & file (Quebec)
       - flex rating (not used in Canada)
    COMPETITIVE (2):
       - file only
       - open competition (Nunavut, Yukon)
  2. Examples of each type, where applicable

There are a fair number of BattleCards in the quiz because but they are mostly recent exam problems. They are all based on a just a few simple ideas.

Notes:
  • Page 26 of the source text lists rules for simplified filing guidelines in Ontario. These guidelines are OUT OF DATE, and directly contradict information from FSCO.PPA. This KPMG paper was written in 2012, and the simplified guidelines have changed. (See FSCO.PPA for the updated guidelines.)
  • Page 21 and 30 of the source text lists Alberta rate regulation as being a combination of government-mandated and file & use. This is outdated as new regulations were introduced in 2014. There is a forum thread on that topic here: Alberta rate regulation.

mini BattleQuiz 1 You must be logged in or this will not work.

mini BattleQuiz 2 You must be logged in or this will not work.

mini BattleQuiz 3 You must be logged in or this will not work.

BattleCodes

  • Memorize:
    • types of rate regulation: ACM
    • examples of each type of rate regulation
  • Conceptual:
    • You should understand that the different types of rate regulation lie on a continuum, from very restrictive to very open
    • Products like PPA, that most people use, are typically heavily regulated. Why do you think that is? (One answer is because of the potential for abuse. Insurance companies are for-profit enterprises, and it's very easy for a company to lose sight of the public good in its drive for greater profits. Regulation is the way that all of us "little people" are protected from this!)
  • Calculational:
    • none

Full BattleQuiz You must be logged in or this will not work. (opens in a separate window)

  Forum

POP QUIZ ANSWERS

  • Recall:
PR = Co.EE(not ceded) / Prov.EE(not ceded)
  • Therefore PR = 2,800 / 15,000 = 18.67% (You don't need the second row of data in the table.)
  • Note that technically, the PR depends on (T.V.PPA.NF.TPL) direct EE (Total Voluntary PPA Non-Fleet Third Party Liability direct earned exposures).
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