Chapter 1 Actuarial Advice Flashcards
1
Q
Possible clients for an insurance company (19)
A
- Board of directors
- Employers and Employees
- Accountant
- Lawyer
- Actuary
- HR
- Administration
- Policyholder + their dependents
- Shareholders
- Competitors
- Reinsurers
- Banks
- Investment managers
- Consultants
- Creditors
- Government
- Regulator
- Auditor
- Tax payers
2
Q
Possible clients for a benefit scheme (14)
A
- Sponsoring company’s board of directors
- Sponsor
- Member + their dependents
- Sponsoring company’s shareholders
- Competitors
- Insurance (cover in service death)
- Banks
- Investment managers
- Advisors
- Creditors
- Government
- Regulator
- Auditor
- Tax payers
3
Q
Possible clients for a banks (18)
A
- Board of directors
- Employers and Employees
- Accountant
- Lawyer
- Actuary
- HR
- Administration
- Account holders + their dependents
- Shareholders
- Competitors
- Banks
- Investment managers
- Consultants
- Creditors
- Government
- Regulator
- Auditor
- Tax payers
4
Q
List 9 areas in which actuaries can provide advice to employers
A
- Life and health insurance: protection against financial loss arising from sickness or death, e.g., key person insurance.
- General insurance: protection of assets, e.g., buildings or machinery.
- Benefit schemes: provision of work-related benefits that will attract and retain good quality staff
- External environment: meeting legislative requirements, tax
- Expenses: managing running costs
- Capital: quantification of surplus capital, and ways of raising additional capital
- Investment: setting and monitoring
- Risk: identification, analysing, mitigating and quantification thereof
- Project: project management and appraisal
5
Q
List 8 areas in which actuaries can provide advice to the board of directors of an insurance company
A
- External environment: meeting legislative requirements, tax
- Investment: setting and monitoring
- Managing liabilities
- Determining provisions
- Premium rating
- Meeting policyholders’ reasonable expectations (PRE)
- Good corporate governance
- Reinsurance requirements
6
Q
List 6 areas in which actuaries can provide advice to the sponsor of a benefit scheme
A
- Providing protection benefits that meet the needs of the members and their dependents
- Providing retirement benefits that meet the needs of the members
- Managing the cost of providing the benefits
- Meeting legislative requirements
- Investment: setting and monitoring
- Valuation of and advising appropriateness of assets and liabiltiies
7
Q
List 4 areas in which actuaries can provide advice to the government
A
- Setting legislation that impacts on the provision of financial products
- Monitoring the adherence to the legislation
- Funding benefit provision by the state
- Monitoring the funding of benefit provision by the state
8
Q
List 4 sources an actuary can use to get information about a client
A
- Company accounts
- Other published information
- Client’s website
- Meetings and less formal discussions with the client, to help understand the client’s culture
9
Q
What are the 3 different types of advice an actuary can give?
A
- Factual - based on research of facts
- Indicative - giving an opinion without fully investigating the issue, such as in response to a direct question
- Recommendations - researched and modeled forecasts, alternative weighted, recommendations made consistent with requirements, work normally peer-reviewed
10
Q
List the 3 types of advice an actuary will give policyholders
A
- Life and health insurance: Protection on ill health, injury, or death (dependents)
- General insurance: Protection of property against damages or theft
- Investments: Saving for a future known or unknown event
11
Q
List the type 3 types of advice an actuary will give trustees of a benefit scheme
A
- Ensuring scheme pays benefits as they fall due
- Maintaining solvency
- Managing and monitoring scheme investments
