The ACC

Question 1

The general commercial and economic environment

A SPRITE

Answer 1

Asset classes
Stakeholders
Providers of benefits
Regulation
Insurance products
The external environment
Economic influences

Question 2

Specifying the problem
RiCC /
ASSA

Answer 2

Risk and risk management
Contract design
Capital requirements
/

Analyse the risks of all stakeholders
Set out the problem from the view of each stakeholder
Set out the risks faced and how they can be managed, mitigated or transferred
Analysis of the options for design of plans that could be considered

Question 3

Developing a solution
SPCA PS MAD/
MADRS

Answer 3

Surplus management
Provisioning
Capital management
Asset management

Setting assumptions
Pricing and funding

Modelling
Accounting and reporting
Data

/

o Model
 Consider major actuarial models in use and how they can be adjusted
 Selection of the appropriate model to use or construct a new one
o Assumptions:
 Consider and select the assumptions to be used
 Understand the sensitivity of the results to the assumptions
o Data:
 Determine the quantity and quality of data available
o Results:
 Interpret the results of the modelling process
 Consider the implications of the model results on the overall problem and the to the various stakeholders
o Solution:
 Determining a proposed solution to the problem
 Consider alternative solutions
 Formalise a proposal

Question 4

Monitoring the experience
MA/
MI

Answer 4

Monitoring
Analysis of surplus
/

o Monitoring the experience and feedback into the problem specification and solution development
o Identify causes of any departure from the targeted outcomes from the model and whether such departures are likely to recur

Question 5

Professionalism

Answer 5

How to do a professional job PRICK CNIC
Managing conflict: CAR DR
Chinese walls
Avoiding conflict, such as declining a job
Records kept in detail of the work done
Disclose the conflict to all parties involved
Regulators notified if TCF not complied with

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