Chapter 32: Policy data checks

Question 1

What will the actuary want to ensure wit regards to data:

Answer 1

The actuary will want to ensure that the data he or she uses are complete and accurate

Question 2

Data check procedures: (4)

Answer 2

1. data movements (reconcile data between start and end period)
2. consistency (check numbers are sensible)
3. unusual values and spot checks (check that they do not exist)
4. analysis of surplus (any unexplained items?)

Question 3

Items of data for non-unitised business: (4)

Answer 3

1. the number of contracts
2. the basic sum assured
3. the office premium
4. for with-profit contracts, the amount of any attaching bonuses.

Question 4

Items of data for unitised business: (4)

Answer 4

1. the number of contracts
2. the number of units actually allocated, sub-divided by unitised fund
3. current premium payable
4. current benefits available, e.g. amount of death cover.