O Chapter 1 Actuarial advice

Question 1

Posible clients (privet sector)

Answer 1

Insutance:
* prospective policyholders
* policyholders
* board of directors
* shareholders
* creditors
* auditors
Benefit schemes:
* members and their depensents
* empliyers
* trustees
* sponsors
* auditors of the sponsors
Other:
* employees
* investment fund mansgers
* members of investment schemes
* sponsors of capital projects
* banks

Question 2

Public sector (advise)

Answer 2

• Central and local government departments
• Regulatory bodies
• Central banks

Question 3

Advise for borde of directors

Answer 3

• Meering legialative requirements
• Investment and management of assets
• Managing liabilities
• Determining provisions
• Premium rating
• Meeting policyholders’s reasonable expectations (PRE)
• Good corporate governance
• Reinsurance requirements

Question 4

6 Advice for prospecrice policyholders

Answer 4

• personsl protection against death and illness
• protection of property
• investment
• retirement planning
• protection against requiring long term home or nutsing care
• protection against petsonal liability claims (e.g. for causiiong a motor accident)

Question 5

7 Advice for employers

Answer 5

• protectuin against financial loss arising from sickness or death
• protection of assets
• provision of work related benefits that will attract and retain good quality staff
• meeting legislative requirements
• managing the costs of running the business
• quantifivation of surplus capiral
• investment of surplus capital

Question 6

srakeholders involved in a pension scheme

Answer 6

• membets
• members dependents
• trustees
• shareholders of the sponsor
• direcrors of the sponsor
• employees of the sponsor (who are not scheme members)
• auditors/accountants
• regulatory bodies
• government
• administrators
• investment fund managers
• creditors of the sponsor

Question 7

advise for trustees of benfit schemes

Answer 7

• managing the assets of the scheme
• paying the bemefits promised under the cheme as they fall due
• maintaining solvency

Question 8

Advice for sponsers of benafit schemes

Answer 8

• providing ptotection benefits that meet the needs of the membets and their dependents
• prociding retirment bemefits thay meet the needs of the membets
• managing the cost of providing the benefits
• meeting legislative requirements

Question 9

Advice for employees

Answer 9

• provision of protection bemefits on death or sickness
• provision of pension benefits on retirement
• investment of surplus personal funds

Question 10

Sponsors of capital projects

Answer 10

• assessment of the risks underlying the project
• consideration of potential risk mitigation techniques
• evaluation of the future cashflows

Question 11

Advice for govetnment

Answer 11

• setting legislation that impacts on the provision of financial products, schemes, contracts and transactions that provide benefits on future financial events
• monitoring the adherence to the legislation
• funding benefit providion by the state
• monitoring the funding of benefit procision by the state

Question 12

Sorces of information on clients

Answer 12

• company accounts
• other published information
• clients website
• meetings and less formal discussions with the client, to help understand the clients culture

Question 13

Types of advice

Answer 13

• factual: based on research of facts
• indicative: giving an opinion without fully investifating the issue, such as in response to a direct question
• recommendations: researches and modeled forecasts, alternatice weighted, recommendations made consistent with requirements, work normally peer reviewed