CIA DCAT

Question 1

CIA DCAT - Key elements of DCAT

Answer 1

develop base scenario; analysis of adverse scenarios; analysis of mitigation strategies; report on results and recommendation to board; actuary opinion

Question 2

CIA DCAT - Materialty standard depends on:

Answer 2

size of company; financial position; nature of regulatory test

Question 3

CIA DCAT - Types of ripple effects

Answer 3

adjustment to base assumptions; expected response to adversity; policyholder or regulatory action; rating agency action; changes in planned capital injections or distributions

Question 4

CIA DCAT - Considerations in model validation

Answer 4

use prior year assumptions to see if matches acutal; reasonable in all scenarios; flexible assumptions

Question 5

CIA DCAT - Considerations in segmenting model

Answer 5

management; product; investment

Question 6

CIA DCAT - Purposes of communicating report

Answer 6

significant risks exposed; possible actions to reduce or eliminate exposure