Monitoring Flashcards

1
Q

What is the reason for monitoring?

A
  • determine if assumptions need to be updated
  • monitor trends in experience
  • compare actual vs. expected and see if corrective action needed
  • determine if pricing and reserves are sufficient
  • provide management with information
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2
Q

What are the reasons for AOS?

A
  • determine financial effect of divergence from assumptions
  • financial effect of writing new business
  • valuation check
  • regulation purposes
  • determine trends on experience
  • determine the non-recurring components of surplus to be used for distribution to with-profits PH
  • for EV analysis reasons
    – check data, assumptions and methods
    – use to determine executive remuneration values
    – information to be included in company accounts
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3
Q

How can the results be used?

A

Health and care
process
- improve pricing basis
- capital allocation methodology
- improve underwriting process
- change reinsurance strategy
policy
- policy design
- wording of policy contracts.
marketing
- improve marketing message
- improve sales procedures and commission structures
- improve staffing

Retirement funds
- revising the investment strategy
- providing feedback to the sponsor
- improving the valuation basis.

For all benefit arrangements
- establishing and revising the reserving and valuation basis - improving systems and data recording processes.
- improve underwriting process

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