CHP 19: Data

Question 1

What are the uses of data

Answer 1

MAP! MAP SE SIR

 Marketing
 Administration
 Provisions

 Management info & financial control
 Accounting
 Pricing

 Statistics
 Experience

 Statutory returns
 Investment monitoring
 Risk management

Question 2

Key risks in using data

Answer 2

CRIP AGL
 Credibility
 Relevance
 Inaccurate,incomplete
 Past does not = future

 Appropriate for purpose
 Groups too small
 Lack of confidence in data

Question 3

What are the sources of data

Answer 3

TRAAIINERS

 T—Tables (mortality tables)
 R—Reinsurers
 A—Abroad (data from overseas/other depts)
 A—Accounts (financial accounts)
 I—Industry data
 I—Internal data
 N—National statistics
 E—Existing products
 R—Regulatory reports & company accounts
 S—Similar products

Question 4

What are the issues with industry wide data

Answer 4

 Industry wide data problemsDECEPTIONS or QUERIED
 D–Detailed
 E—Errors in data
 C—Contributions affect quality
 E(CF)—Coding of factors varies from co
 P—Practices differ for co (underwriting, claim assessment etc)
 T—Target market differs for co
 I—Identical policies
 O—Out of date
 N—Nature/format of data differs.
 S—Sales Method differs

 Q—Quantity (credibility)
 U—Up-to-date
 E—Errors
 R—Relevance (heterogeneity)
 I—Incomplete?
 E—Exceptional
 D—Detail and format

Question 5

What are some data checks that can be done

Answer 5

 Data checks—RRACCS
 Reasonability checks
 Reconcile
 Reconcile with accounting data
 data used for other purposes (assets, member, policy, exposure data)
 Auditing
 Consistency
 Between claims & exposure data
 Of exposure info over time
 Avg SA & premiums
 Contri & benefit levels
 Spot checks