Difference between revisions of "ASOP43.UnpaidClmEst"
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| + | '''Reading:''' Actuarial Standard of Practice No. 43, ''Property/Casualty Unpaid Claim Estimates'' | ||
| + | ==Pop Quiz== | ||
| + | |||
| + | |||
| + | ==Study Tips== | ||
| + | |||
| + | [https://www.battleactsmain.ca/battleacts5.ca/forum5/index.php?p=/categories/asop43-unpaidclmest<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] ASOPs generally have these sections: | ||
| − | + | : '''Section 1.''' Purpose, Scope, Cross References, and Effective Date | |
| + | : '''Section 2.''' Definitions | ||
| + | : '''Section 3.''' Analysis of Issues and Recommended Practices | ||
| + | : '''Section 4.''' Communications and Disclosures | ||
| + | : '''Appendices''' | ||
| + | Sections 3 & 4 contain most of the relevant information. The definitions in Section 2 are usually obvious and familiar, and are covered in either the Werner of Friedland source texts anyway. You can skip Section 1 and the Appendices. The appendices usually contain either very general background information or comments on the draft version of the ASOP. | ||
| − | + | '''Estimated Study Time''': 30 minutes ''(you may occasionally refer back to this ASOP while studying the main pricing and reserving material)'' | |
==BattleTable== | ==BattleTable== | ||
| − | + | * ''this reading has not been tested on any exam from the year 2012 and subsequent'' | |
| − | + | : {| class="wikitable" style="width: 1000px;" | |
| − | + | |- | |
| − | + | ! style="width: 175px;" | reference !! style="width: 175px;" | part (a) !! style="width: 185px;" | part (b) !! style="width: 175px;" | part (c) !! part (d) | |
| − | : {| class= | ||
|- | |- | ||
| − | + | || ''no prior questions'' | |
| + | | style="background-color: lightgrey" | | ||
| + | | style="background-color: lightgrey" | | ||
| + | | style="background-color: lightgrey" | | ||
| + | | style="background-color: lightgrey" | | ||
|} | |} | ||
| + | |||
| + | [https://www.battleacts5.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=ASOP43&suffix=UnpaidClmEst§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span> | ||
==In Plain English!== | ==In Plain English!== | ||
| + | ===Section 2: Definitions=== | ||
| + | |||
| + | The terms defined in this section are all very obvious but there's one that might be worth memorizing: | ||
| + | |||
| + | :{| class='wikitable' | ||
| + | |- | ||
| + | || '''unpaid claim estimate''': the actuary’s estimate of the obligation for future payment resulting from claims due to past events | ||
| + | |} | ||
| + | |||
| + | ===Section 3: Analysis of Issues and Recommended Practices=== | ||
| + | |||
| + | This section in ASOP 43 contains several detailed lists and sub-lists of issues to be considered when doing a reserve analysis. Much of it is covered incidentally in the main pricing and reserving material. For that reason, I would suggest spending very little time here. If you want, you can print out the source text and use it for bedtime reading. | ||
| + | |||
| + | Just to give you brief idea however, these are a few of the things that are mentioned as considerations when doing a reserve analysis: | ||
| + | |||
| + | * purpose of analysis ''(Ex: internal management or external financial reporting)'' | ||
| + | * limitations ''(lack of credible data or shortage of staff to perform analysis)'' | ||
| + | * understanding the coverages and other relevant data items ''(is the data net/gross of reinsurance, net/gross of salv/sub)'' | ||
| + | * selecting methods appropriate to the characteristics of the data | ||
| + | |||
| + | Those are all pretty obvious. | ||
| + | |||
| + | ===Section 4: Communications and Disclosures=== | ||
| + | |||
| + | This section on communications & disclosures is largely common sense. Regarding the <u>unpaid claim estimates</u>, the actuary should communicate information that may have a material impact on the user's interpretation. Examples of such items include but aren't limited to: | ||
| + | |||
| + | * intended user | ||
| + | * scope of the unpaid claim estimate | ||
| + | * limitations of the analysis ''(maybe a particularly sensitive component requires a more in-depth analysis)'' | ||
| + | * significant events ''(that may have had a material impact on the results)'' | ||
| + | |||
| + | Note that many of these same considerations apply to actuarial communications in general. | ||
| + | |||
| + | [https://www.battleacts5.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=ASOP43&suffix=UnpaidClmEst§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span> | ||
==POP QUIZ ANSWERS== | ==POP QUIZ ANSWERS== | ||
Latest revision as of 15:06, 14 January 2021
Reading: Actuarial Standard of Practice No. 43, Property/Casualty Unpaid Claim Estimates
Contents
Pop Quiz
Study Tips
Forum ASOPs generally have these sections:
- Section 1. Purpose, Scope, Cross References, and Effective Date
- Section 2. Definitions
- Section 3. Analysis of Issues and Recommended Practices
- Section 4. Communications and Disclosures
- Appendices
Sections 3 & 4 contain most of the relevant information. The definitions in Section 2 are usually obvious and familiar, and are covered in either the Werner of Friedland source texts anyway. You can skip Section 1 and the Appendices. The appendices usually contain either very general background information or comments on the draft version of the ASOP.
Estimated Study Time: 30 minutes (you may occasionally refer back to this ASOP while studying the main pricing and reserving material)
BattleTable
- this reading has not been tested on any exam from the year 2012 and subsequent
reference part (a) part (b) part (c) part (d) no prior questions
Full BattleQuiz You must be logged in or this will not work.
In Plain English!
Section 2: Definitions
The terms defined in this section are all very obvious but there's one that might be worth memorizing:
unpaid claim estimate: the actuary’s estimate of the obligation for future payment resulting from claims due to past events
Section 3: Analysis of Issues and Recommended Practices
This section in ASOP 43 contains several detailed lists and sub-lists of issues to be considered when doing a reserve analysis. Much of it is covered incidentally in the main pricing and reserving material. For that reason, I would suggest spending very little time here. If you want, you can print out the source text and use it for bedtime reading.
Just to give you brief idea however, these are a few of the things that are mentioned as considerations when doing a reserve analysis:
- purpose of analysis (Ex: internal management or external financial reporting)
- limitations (lack of credible data or shortage of staff to perform analysis)
- understanding the coverages and other relevant data items (is the data net/gross of reinsurance, net/gross of salv/sub)
- selecting methods appropriate to the characteristics of the data
Those are all pretty obvious.
Section 4: Communications and Disclosures
This section on communications & disclosures is largely common sense. Regarding the unpaid claim estimates, the actuary should communicate information that may have a material impact on the user's interpretation. Examples of such items include but aren't limited to:
- intended user
- scope of the unpaid claim estimate
- limitations of the analysis (maybe a particularly sensitive component requires a more in-depth analysis)
- significant events (that may have had a material impact on the results)
Note that many of these same considerations apply to actuarial communications in general.
Full BattleQuiz You must be logged in or this will not work.
