11. Analysis of Surplus Flashcards
1
Q
Reasons for analysing surplus
A
A(o)S CRIMI(N)A(L)S
Assist in setting future assumptions
Show financial effect of writing new business
Check on valuation data and results (reasonability and consistency)
Regulatory requirement
Identify non-recurring components of surplus, thereby assisting surplus distribution
Management information on trends (provide)
Identify new items in the analysis that may be used to inform risk identification process
Analyse effect of policy alterations
Show financial effect of divergences between valuation assumptions and actual experience
