Preview Questions Actuary | Role Specific Skill

Question 1: In Solvency II, what does the Own Risk and Solvency Assessment (ORSA) require an insurer to do?

Which action should you take?

Choose only one option

Set the solvency ratio target

Prepare the capital management strategy

Calculate the discount rate for technical provisions

Assess and manage risks in the context of its solvency position

Question 2: Which statistical test is most appropriate for comparing the means of two independent groups in an actuarial context?

Which action should you take?

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Paired t-test

One-sample t-test

Two-sample t-test

Chi-square test

Question 3: What is the main advantage of using Generalized Linear Models (GLM) over traditional linear regression in actuarial pricing models?

Which action should you take?

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GLM works faster with smaller datasets

GLM can handle non-normal distributions of the dependent variable

GLM is easier to interpret for non-actuaries

GLM only requires a linear relationship between variables

Question 4: In actuarial financial modeling, what is the purpose of a sensitivity analysis?

Which action should you take?

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To evaluate the impact of regulatory changes on financial statements

To assess how different values of an independent variable affect a particular dependent variable

To determine the optimal investment portfolio

To calculate the expected claims for different policyholders

Question 5: In the context of claims analysis, which of the following distributions is commonly used to model claim severity?

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Gamma Distribution

Exponential Distribution

Uniform Distribution

Normal Distribution

Question 6: How does the use of a Monte Carlo simulation enhance risk modeling in insurance portfolios?

Which action should you take?

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It speeds up the calculation of risk-adjusted returns

It enables the modeling of complex scenarios and potential extreme events

It ensures accurate predictions of risk without requiring historical data

It simplifies the data by assuming normally distributed returns