problem 1: You are the chief actuary to a general insurance company. The company’s main lines of business are employers’ liability, marine, aviation and private motor insurance.
a) describe the features of the business that would affect the choice of investments to be held in respect of such classes of business.
b) describe how the investment portfolio will influence the choice of discount rate used in computing the technical reserves.
problem 2: You are an actuary for a general insurance company that prepares private motor insurance. describe in brief the reasons why you might undertake an actuarial investigation of premium rates for this business.
problem 3: Company PQR wants to introduce a new policy which will cover the risk of bats damaging fruit-laden litchi trees. Describe the feasibility of this option all along the lines of the requirements of a risk to be insurable.
a) What do you mean by the risk factor?
b) What do you mean by rating factor? Describe how it is related to the risk factor.
c) You are the actuary for a general insurance company which prepares household buildings and contents insurance. List distinct rating factors which are likely to be used to rate this business.
problem 5: A general insurance company is wishing to review its reinsurance arrangements. State the factors which might affect its decision.