Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

General Insurance Reserving and Capital Modelling > Acronym > Flashcards

Acronym Flashcards

1
Q

Expenses Uncertainty

A

A TAD NOBLE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Factors affecting investment strategy

A

ADVERSE SUNTAN CORRECTOR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

ADVERSE SUNTAN CORRECTOR

A

Factors affecting investment strategy

Accrual of liabilities in the future
Diversification
Valuation requirements
Existing Portfolio
Restrictions statutory/legal/voluntary
Size of free assets (absolute/relative)
Economic outlook
Solvency requirements
Uncertainty of the liabilities
Nature of the liabilities
Tax treatment of the insurer/assets
Availability of assets
Non-investible funds
Currency of the existing liabilities
Other insurer (competition)
Risk appetite
Reinsurance
Expenses
Credit rating
Term of the existing liabilities
Objectives
Return (expected long term)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A TAD NOBLE

A

Expenses uncertainty

Aggregators

Tax
Accounting Changes
Distribution Channels

New markets
Off-shoring
Broker power
Levies
Economic conditions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Investment uncertainty

A

AGE ROT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

AGE ROT

A

Investment uncertainty

Actions by central bank
Globalization
Economic cycle

Return
Overseas influences
Type of investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Reserving Uncertainty

A

BALANCED FLACCID DAFT CRUMB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

BALANCED FLACCID DAFT CRUMB

A

Reserving uncertainty

Behavior of third parties
Amount of claims
Latent claims
Assumption on distribution
New classes
Catastrophes
Economic conditions
Development patterns
Frequency of claims
Legislation
Area (globalization)
Climate change
Claim handling procedure
Inflation
Demand surge

Distribution channels
Arrangements for profit shares
Format of data
Third party handlers

Competitive pressures
Reserving philosophy
Unusual/large risks
Mix of business
Bodily injury claims
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

ROC uncertainty

A

CGI MICE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

CGI MICE

A

ROC uncertainty

Competition
Globalization
Insurance cycle

Margins on premiums
Investment returns
Claims
Expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Key risk types

A

CLOG RUM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

CLOG RUM

A

Key risk types

Credit
Liquidity
Operational
Group

Reserve
Underwriting
Market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Problems with inward RI reserving

A

CLUB SIGH

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

CLUB SIGH

A

Problems with inward RI reserving

Cedants use different reserving bases
Longer reporting delays
Upwards development of claims
Benchmark less relevant

Sparse data
IT constraints
Grouping of data
Heterogeneous exposure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Claims characteristics

A

CRAFT CRAMPS VENDS DRILLS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

CRAFT CRAMPS VENDS DRILLS

A

Claims characteristics

Catastrophes
Reporting delays
Accumulations
Frequency
Trends
Currency
Reinsurance
Amount (severity)
Moral hazard
Partial payments
Settlement delays
Volatility
Event delays
Nil claims
Definition
Seasonality
Distribution
Reopened claims
Inflation
Large claims
Latent claims
Salvage and subrogation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Stakeholders of general insurance company

A

CRAMPERS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

CRAMPERS

A

Stakeholders of general insurance company

Credit rating agencies
Reinsurers and brokers
Auditors
Management
Policyholders
Employees
Regulators
Shareholders
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Reinsurance analysis

A

CRAVE APE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

CRAVE APE

A

Reinsurance analysis

Catastrophe reinsurance
Reinstatements
Amount of risk to retain
Value for money
Extent of accumulations

Appropriateness of cover
Profitability of layers
Effects on capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Objectives of regulation

A

CREAM HEMP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

CREAM HEMP

A

Objectives of regulation

Create liquidity
Reduce transaction costs
Efficiency of the financial system
Allocate resources efficiently
Manage risk

Help growth and competition
Economies of scale in investment
Mobilize long term savings
Protect policyholders

23
Q

Data needed for capital modelling

A

CRUDE CALF PUP

24
Q

CRUDE CALF PUP

A

Data needed for capital modelling

Claims payment profiles
RI programmes
Unpaid gross claims
Details of operational risks
Expenses

Credit exposures
Asset values
Large losses
Future reinsurance costs

Planned premiums (gross and net)
Unexpired premiums (gross and net)
Planned RI programmes
25
Q

Disadvantages of regulation

A

EPIC BLOC

26
Q

EPIC BLOC

A

Disadvantages of regulation

Economies of scale (fewer)
Premiums increased
Investment return lower
Costs

Barriers to entry
Less insurance coverage
Opportunity cost
Complex capital calculations

27
Q

Claims analyses

A

INNER CRAP

28
Q

INNER CRAP

A

Claims analyses

Impact/incidence of large claims
New claim types
Nil claims
Expenses vs indemnity cost
Re-opened claims

Changing frequency and severity
Recoveries on gross claims
Assessing concentration
Partial payments

29
Q

Capital modelling uncertainty

A

MIS PI PIP

30
Q

MIS PI PIP

A

Capital modelling uncertainty

Model
Incorrect dependencies
Simulation

Programming
Incomplete data

Poor data
Inconsistent data
Parameter

31
Q

Categories of uncertainty

A

MR DAMPP

32
Q

MR DAMPP

A

Categories of uncertainty

Model error
Random error

Data error
Adjustment factors
Market conditions
Portfolio movements
Parameter error
33
Q

Criteria for an insurable risk

A

MUD PIS

34
Q

MUD PIS

A

Criteria for an insurable risk

Moral hazard avoided
Ultimate limit to Liability
Data available to assess the risk

Probability of occurrence low
Independent risks
Similar risks pooled

Essential features (FIA)
Financial/quantifiable
Interest in risk being insured
Amount payable relate to size of loss

35
Q

Reasons for purchasing reinsurance

A

PASS LIFE

36
Q

PASS LIFE

A

Reasons for purchasing reinsurance

Profitability (increase)
Avoid single large losses
Smooth results
Solvency (improve)

Limit exposure to single events or accumulations
Increase capacity to accept risk
Financial assistance
Expertise

37
Q

Experience analyses

A

PEACE REP

38
Q

PEACE REP

A

Experience analyses

Pricing and sales of policies
Environmental changes
Anything else the management require
Claims reserves/claims experience
Expense analysis and allocation

Risk exposure and aggregations
Estimation of claim trends
policyholder behavior

39
Q

Assumptions needed for a capital model

A

REDUCE DOG CRITIC

40
Q

REDUCE DOG CRITIC

A

Assumptions needed for a capital model

RI share of ultimate claims and RI bad debt
Exhaustion of reinsurance and reinsurer
Downgrade assumptions
Ultimate gross claims
Ceded premiums
Expenses

Dividends
Operational losses
Gross written premium

Catastrophe claims
Reserve movements (gross) by COB
Inflation
Tax
Investment returns, split by asset class
Claims payment profiles
41
Q

Investment and capital analyses

A

RICE AD

42
Q

RICE AD

A

Investment and capital analyses

Risk assessment
Investment policy
Capital requirements
Evaluate existing portfolio

Allocate capital between classes
Determine return on capital

43
Q

Examples of regulation

A

SAD ADVERTS PROMPTS ACIDIC CALM

44
Q

SAD ADVERTS PROMPTS ACIDIC CALM

A

Examples of regulation

Solvency level
Amount/type of business written
Disclosure

Auditing
Deposit assets to meet liabilities
Valuation basis (assets and liabilities)
Equalization reserve
Risk based capital calculations
Type/amount of assets to demonstrate
Publish premium
Reinsurance requirements
Offer required cover
Mandatory restrictions on cover
Premium rates
Treating customers fairly
Statement of actuarial opinion
Authorization of companies/ agents/ management
Cooling off period
Illegal products
Discounting of liabilities
Information used in underwriting
Compensation scheme

Countries where business is written
Anti-competitive behaviour
Levies to consumer protection bodies
Mismatching requirements

45
Q

Factors affecting data

A

SEMI COMA

46
Q

SEMI COMA

A

Factors affecting data

Size of company
Existence of legacy systems
Management and staff
Integrity of data systems

Class of business
Organization (nature of)
Method of sale
Age of company

47
Q

When to allow for diversification

A

SPAR SPA

48
Q

SPAR SPA

A

Solvency assessment
Performance measurement
Asset allocation
RI Purchasing

Strategy setting
Pricing
Assessment enterprise level risks

49
Q

External environment

A

STILL CUBIC WAGE

50
Q

STILL CUBIC WAGE

A

External environment

Seasonality
Technological change
Investment conditions
Latent claims
Legislation
Catastrophes
Underwriting cycle
Behavioral trends
Inflation
Court awards

Weather
Awareness of the ability to claim
Global warming
Exchange rates

51
Q

Features of good model

A

VAN FUR UP CAVE

52
Q

VAN FUR UP CAVE

A

Features of good model

Valid
Adequately documented
Not overly complex

Flexible
Understandable by managers
Reflect risk profile

Uncertainty should be verifiable
Parameters identified and justified

Complete
Appropriate parameters
Verifiable
Easy to communicate results

53
Q

Criteria for an exposure measure

A

VENOM ADA

54
Q

VENOM ADA

A

Criteria for an exposure measure

Verifiable
Easy to obtain
Non-manipulative
Objective
Measurable

Acceptable to the market
Defines the risk
Acceptable to the policyholder

General Insurance Reserving and Capital Modelling (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions