Chapter 5. v.2 Flashcards
What is the strategy team function
They set the strategy - research on behalf of the board
Who approves the strategy set by the stategy team
the board
Who makes up the strategy team
Senior managers below board level
What is the main tool the strategy team use
SWOT - Strengths, weakness, opportunities and threats
What will the strategy team look at
Mergers and Acquisitions
Launching new products
Research new territories
Distribution channels
if its long term direction, who will be dealing with it
Strategy team
What four things do the actuarial function look at
Pricing, reserving, modelling and solvency capital
What is a pricing actuary
Sets the premiums, predict loss ratios
What is a reserving actuary
Looks at WHOLE set of claims (all motors etc) and see if the company is under or over reserving
What is a modelling actuary
They look at exposures of impact storm or flood could have on portfolio - could be too much in one area
What is a solvency capital actuary
Make sure comply with solvency II. Legal requirement.
What is the risk management function
Look at risks related to insurer. Identification and analysis and control. IAC of all risks relating to the insurer.
Are the risk managers there to eliminate risks
No to control them
What is inherent risks for risk managers
What you start with
What are residual risks for risk managers
where you put controls in place (for example bought more reinsurance because you’re exposed to a claim) done some hedging.
