CIA Discounting

Question 1

CIA Discounting - Elements of discounting

Answer 1

payment patterns, discount rates, mfad

Question 2

CIA Discounting - Considerations for which of gross, net, ceded to calc

Answer 2

data availability, cash flow volatility, reinsurance program, discount rate

Question 3

CIA Discounting - Expected investment return depends on

Answer 3

method of valuing and reporting, allocation of income among lob’s, return on assets, yield after balance sheet date, capital gains after balance sheet date, investment expenses, losses from default

Question 4

CIA Discounting - Discount rate options for ceded liabilities

Answer 4

portfolio yield rate, risk-free rate, assuming company discount rate