Chapter 13: Data

Question 1

List5data considerations

Answer 1

relevant
credible - sufficiently large volume of data
available
format of the datashould also be considered
thecost of obtaining and analysing the data

Question 2

List 5factors influencing the relevance of external sources of data

Answer 2

underwriting
policy wording (terms and conditions)
claims management procedures
distribution channels
target market

Question 3

List 5sources of data

Answer 3

own data:
most relevant, but may not be credible

population data:
not fully relevant to insured lives applicable to the insurer and the specific product,should be very credible
may not always be available electronically or in an appropriate format
may be out-of-date before it becomes published

reinsurer data:
reinsurer should make the data as relevant as possible, although further adjustments may be needed
should be more credible than own data

industry data
should be more relevant than population data
should be credible
may be out-of-date before it becomes published

overseas data:
may not be relevant (differing market practices, state healthcare provision)
should be credible