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Actuarial F103 - General Insurance > QQ > Flashcards

Flashcards in QQ Deck (2)
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1
Q

For data obtained from external sources we should compare (5)

A
  • the terms of the policy cover offered
  • levels of risk underwritten
  • the loadings included for expenses and profit in the premium
  • socio-economic differences

We should also establish the time period of the data in order to make appropriate allowance for inflation.

2
Q

Measures to mitigate the effects of inadequate data (6)

A
  • add. prudence in the model structure
  • only write a subset of risks/perils until actual experience becomes available
  • consider only accepting liability covers with low limits & exposures
  • use more reinsurance (lowering the retention)
  • examine the sensitivity of the pricing models
  • monitor key statistics to spot problems early