Chapter 26 - nature of risks (3)

Question 1

Management aims

Answer 1

• maximise (within an acceptable level of risk) the profits of the insurer
• maximise (within an acceptable level of risk) the return on the insurer’s available capital

Question 2

Actuary should aim to enable insurer to meet its aims in the context of:

Answer 2

• its risk profile
• the resources available to it
• the public interest need
• the requirements of other applicable legislation

Question 3

Problems that confront the actuary in achieving his/her aims

Answer 3

1. policy data
2. product design
3. product marketability
4. pricing
5. return on capital or members’ funds
6. profitability
7. supervisory reserves
8. investment
9. capital management or funds of the mutual
10. risk management
11. claims