Preview Questions Actuary | Role Specific Skill

Question 1: What is the focus of IFRS 9 in relation to insurance liabilities?

Which action should you take?

Choose only one option

Valuation of non-insurance financial assets

Recognition and measurement of financial instruments

Calculation of premium revenue

Accounting for insurance contract expenses

Question 2: When analyzing the persistence of insurance claims, which statistical technique would you use to model the time until a claim reoccurs?

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Cox Proportional Hazards Model

All of the above

Kaplan-Meier Estimator

Survival Analysis

Question 3: Which method would you use for determining the relationship between claim frequency and the size of claims in a non-life insurance portfolio?

Which action should you take?

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Cox Proportional Hazards Model

Kaplan-Meier Estimator

Poisson Regression

Negative Binomial Regression

Question 4: What is the primary goal of this technique?

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To minimize the variance in claim estimations

To calculate the exact value of future liabilities

To provide a deterministic forecast of future claims

To generate multiple scenarios for future claims distributions

Question 5: What is the primary difference between a "defined benefit" (DB) and a "defined contribution" (DC) pension plan?

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DB plans are more common in the private sector, while DC plans are more common in the public sector

DB plans have investment risk borne by employees, while DC plans have investment risk borne by employers

DB plans are funded by employers only, while DC plans are funded by both employers and employees

DB plans specify the benefits to be received, while DC plans specify the contributions to be made

Question 6: How does the use of reinsurance affect the pricing of an insurance product?

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It has no impact on pricing

It lowers premiums by transferring part of the risk

It increases the premium due to the cost of reinsurance

It only affects underwriting but not pricing