Part 2 Flashcards
1
Q
Key risks a life company faces
A
- Longevity, morbidity, mortality
- Investment risk
- Expenses
- Early withdrawls
- New business volumes
- Operational risk
- Credit risk
2
Q
Key risks a general insurance company faces
A
- Claims amounts, frequencies and delays
- Accumulation of risks and catastrophes
- Investment risk
- Expenses
- Poor persistency
- New business volumes
- Credit risk
- Operational risk
3
Q
Types of Provisions:
A
- Outstanding reported claims reserves
- Incurred but not yet reported reserves
- Unexpired risk reserve
- Catastrophe reserve
- Claims handling expense reserve
4
Q
Types of general insurance products
A
- Liability insurance
- Property damage insurance
- Financial loss insurance
- Fixed benefits insurance
5
Q
Types of liability insurance
A
- Employers’ liability
- Motor third party liability
- Public liability
- Product liability
- Professional indemnity
6
Q
Types of property damage insurance
A
- Residential building
- Commercial building
- Movable property
- Land vehicles
- Marine craft
- Aircraft
7
Q
Types of financial loss insurance
A
- Pecuniary loss insurance
- Fidelity guarantee
- Business interruption cover
8
Q
Types of fixed benefit insurance
A
- Personal accident insurance
- Health insurance
- Unemployment insurance
9
Q
Contract design factors
A
- Customer needs and interests
- Characteristics of the other stakeholders involved in contract design
- Risk appetite of the parties involved
- Level and form of benefits
- Options and guarantees
- Discretionary benefits
- Early leaver/discontinuance benefits
- Contract terms and conditions
- Profitability
- Marketability
- Competition
- Statutory and legal requirements
- Financing requirements
- Premium/contribution pattern
- Charges vs expenses
- Extent of cross subsidies
- Consistency with other contracts
- Accounting standards
- Administration systems
