stakeholders Flashcards
Structure to answer ACC related questions
Specifying the problem:
What is happening to the risks? Transferring?
What kinda risk is involved and explain a bit on the scenario
What is the problem - this is essentially what is required with the question’s proposed product
Developing the solution:
First determine initial assumptions for future experience
review existing industry data
discuss basis with underwriter and reinsurer
discuss investment returns with investment managers and agree on suitable matching assets
Use judgement to extent of margin for prudence in reserving and allowance for capital requirement
Extend profit-testing models
Run the model with different parameters to test for
sensitivity
Bring assumed reserving basis into profit-testing model
Monitoring the experience
Monitor experience regularly after launch on an ongoing basis
actual vs expected like actual performance vs benchmarks
Take time to get accurate picture of accuracy of assumptions
If actual and assumptions differ then re-run profit test with new assumptions
new premium rates
new reserving basis
feeds back into the ACC cycle
Professionalism
Relevant regulation and professional guidance
when pricing
and reviewing
Consider regulations around distributions
Ensure TCF been applied
fit and proper for the staff assigned, should behave in accordance to their standards and requirements
External environment
Compare proposed to those available of other companies
Pay attention to changes in competitors
characteristics of current economic environment
tax environment
regulatory requirements
current stage in the underwriting cycle
trends in the market such as demand
needs of policyholders/sharedholders
