Preview Questions Actuary | Role Specific Skill

Question 1: What does a z-score of +2 indicate when interpreting a dataset of insurance claims?

Which action should you take?

Choose only one option

The value is below the mean by 2 standard deviations

The value lies outside the 95% confidence interval

The value is equal to the mean

The value is 2 standard deviations above the mean

Question 2: In a large dataset of insurance policyholders, which method would be most appropriate for identifying subgroups with similar risk profiles?

Which action should you take?

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Principal Component Analysis (PCA)

K-means Clustering

Linear Discriminant Analysis (LDA)

Hierarchical Clustering

Question 3: What is the primary purpose of the Risk Margin in Solvency II's valuation of technical provisions?

Which action should you take?

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To calculate the firm's operational risk

To adjust the capital required for market fluctuations

To ensure that insurance liabilities reflect the cost of transferring them

To determine the profitability of new business

Question 4: How does the term "tail risk" influence the risk assessment in the banking and insurance sectors?

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It represents the risk of rare, extreme events that could have a disproportionate impact

It identifies the normal fluctuations in market prices

It measures the average loss expected in a typical market scenario

It analyzes the risk of inflation affecting long-term investments

Question 5: Which of the following is NOT a key requirement of the IFRS 17 standard in terms of actuarial valuation?

Which action should you take?

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Separate the insurance service result and investment result

Classify contracts based on their profitability

Use the discounted cash flow method for all liabilities

Consider future income from new policy sales

Question 6: In life insurance modeling, what is the purpose of constructing a life table?

Which action should you take?

Choose only one option

To analyze the discount rate on future claims

To measure variance in claim frequency

To determine the premiums for policyholders

To calculate expected mortality rates at various ages