Preview Questions Actuary | Role Specific Skill

Question 1: What does the term "funded ratio" in a pension plan indicate?

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The ratio of plan assets to present value of future obligations

The percentage of current assets relative to current liabilities

The cost of future pension benefits relative to contributions

The long-term solvency of a plan

Question 2: Which technique is commonly used by actuaries to forecast future claims based on historical data and trend analysis in insurance?

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Principal Component Analysis (PCA)

Generalized Linear Models (GLM)

Monte Carlo Simulation

Decision Trees

Question 3: Which of the following would be the most appropriate method to price a portfolio of property insurance policies in areas prone to frequent natural disasters?

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Catastrophe modeling

Generalized linear models (GLM)

Time-series analysis

Mortality risk modeling

Question 4: What does a z-score of +2 indicate when interpreting a dataset of insurance claims?

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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 5: When interpreting stress testing results for a financial portfolio, what is typically assessed?

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The portfolio's resilience under extreme market conditions

The daily volatility of the portfolio

The average return of the portfolio under normal conditions

The total risk premium

Question 6: How does the introduction of IFRS 17 impact the pricing of insurance products?

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It simplifies the pricing process for long-term contracts

It requires more complex cash flow modeling

It eliminates the need for a risk margin in pricing

It reduces the focus on actuarial assumptions