Preview Questions Actuary | Role Specific Skill

Question 1: In actuarial pricing models, which distribution is most commonly used to model the severity of claims?

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Gamma distribution

Binomial distribution

Normal distribution

Poisson distribution

Question 2: Which of the following is a common method used to forecast long-term liabilities in an insurance company?

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Using the Poisson distribution to model claims events

Assuming a constant claims ratio over time

Projecting cash flows using discounted cash flow models

Using historical claims data to extrapolate future losses

Question 3: In forecasting investment returns for an insurance company, which distribution is typically assumed for the underlying returns?

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Normal distribution

Gamma distribution

Lognormal distribution

Exponential distribution

Question 4: When building a financial forecast for an insurance portfolio, which statistical model is used to account for seasonal trends?

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SARIMA model (Seasonal ARIMA)

Poisson regression

Exponential smoothing

Log-normal distribution

Question 5: 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 6: What does Basel III require banks to hold in order to cover potential systemic risks?

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Operational risk reserve

Liquidity coverage ratio (LCR) buffer

Counter-cyclical capital buffer

Risk-weighted assets buffer