Key Lists Flashcards
1
Q
List the areas covered in the PPFM.
A
- Payouts - how they are determined.
- RB policy
- TB policy
- Smoothing policy
- Investment strategy
- Business risk and how it is managed
- Inherited Estate management
- Charges and expenses
- Equity between policyholders and shareholders
- Closure to NB
2
Q
List all the factors to consider regarding the environment for writing new business in the UK.
A
- Regulation and government influence.
- FSMA 2000
- Mis-selling
- Depolarisation
- RDR
- Charge caps
- Policyholder tax
- Premium tax relief 1984
- Pensions taxation
- LISA April 2017
- Economic conditions
- Low interest rates and inflation
- 2000 and 2008
- Effect on projection rules
- Publicity
- Mis-selling
- WP not transparent
- Poor admin
- Equitable Life
- Technology
- Comparison sites
- Website functionality competitive
- Outsourcing legacy business
- Target markets
- Longevity
- Interest rates
- State support
- “Savings Gap”
- Auto-enrolment
- Competition
- Banks
- Building societies
- Fund management companies
- Non-traditional financial companies
- NEST 0.3% AMC
- Industry bodies e.g. ABI
- Code of Conduct on Retirement Choices 2013
- The Guidance Guarantee 2015
3
Q
List possible sources of operational risk.
A
- Mis-selling
- Mis-pricing
- Inadequate experience analysis
- Model risk
- Admin errors
- IT failures
- Transaction processing errors
- Data issues
- Damage to physical assets
- Business disruptions
- Customer services standards
- Staff retention
- Key person risk
- Fraud
- Failure to comply with health and safety regulation
4
Q
What are the factors to consider regarding product design?
A
- Profitability
- Return on capital
- Charging structure / premium rate
- Profit reporting method
- Contribution to overheads
- Product development expenses
- NB Volumes
- Pricing assumptions
- External pricing advice
- Marketability
- Attractiveness to customers
- Target market
- Competitors products
- Tax position
- State benefits
- Options and guarantees
- Surrender penalties
- Capital Requirements
- Must have enough capital
- Additional initial capital required?
- May be high under S2
- Eligible for matching adjustment?
- Onerousness of options and guarantees
- Hedging
- Sensitivity of Profit
- Level of risk
- Risk drivers
- Risk mitigations (e.g Reinsurance)
- Scenario testing
- Cross-subsidies / business mix risk
- Distribution
- Sales channels
- Remuneration
- Commission loading
- Underwriting philosophy
- Admin Systems
- Training
- New literature
- Outsourcing