Notes Extras Flashcards
Describe the ACC
Specify, develop solution, monitor experience
Carry out in professional manner, takiing into account, commericial and general environment and needs of stakeholder
Specifiy includes state objectives, analyse risks
Develop includes build a model, come up with assumptions, do testing
Montir compares actual to expected, trends and feed back into ACC
Why wouldn’t you regulate a market?
Market is new and regulation not yet been determined
Only professionals in it
No abuse can be done, like term assurance
Considerations when writing a report
Competence Conflicts of interest Know the client Written communication clear and level is good Clearness Assumptions needed and made Risks regarding results Regulations, professional guidance
What goes into the costs of a product?
Admin Underwriting Capital requirement and it's opportunity cost Commission Asset management costs Overheads Market research Costs of paying regular benefits from bank Checking someone hasn't dies Valuation costs
17 things on a proposal form
name/address/dob age/height/weight/sex smoker/alocholic marriage status occupation/salary exercise per week current insurance and how much existing problems, history family memebers and their history dangerous hobbies anything else to inform
What to state in cashflow questions
who's perspective main cashflows (premiums, benefits, expenses, investment income) descirption of cashflow (positive or negative, lump sum, variable, certainty of timing/amount/term
What to think about in contract design?
Types of benefits
Payment recieved for cover
Charges for cover will they meet expenses
Objectives of the policy
5 ways to get capital from home
1) sell and move to rented
2) sell and buy cheaper house
3) take out another mortgage and don’t pay anything till death
4) interest only lifetime mortgage
5) equity release home reversion, sell part of home to bank
What order is DR RUB
Risk analysis at high level Risk register Upside risk as well as downside Brainstorm Desktop analysis to supplement brainstorm
What is the WACC? what is the alternative?
The rate of return that needs to be earned on the capital to be used if the existing s/h would be no better or worse off
“the cost of raising incremental capital” to carry out the project
you can increase it to refelct risk
look at other companies discount rates
Give the project appraisal steps from start to finish
- Ideal
- Will it be authorised SPURS
- Risk identifying DR RUB
- Matrix and mitigation PNE FC PB/FAT SIR
- Write investment submission FIRM PEN
- Last minute decisions LAND HO
- Accept/Reject
- . Figure out how to finance it (part of FIRM PEN)
- Make a good project PROJECT CRAMPS
- Write up your strategy document PROSE
- Finish project on time/budget and hand over to owner
