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
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
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