SMM036 General Insurance

Lecture Plans

Lecture 1

Introduction

Description of course website

Description of lecture format

Description of coursework

Discussion of how course fits into actuarial exams and expectations for the exam

Course Slides

Describe chapter 1 of the slides on general features of insurance - for home reading

Cover slides down to Insurance Types

Go straight to Risk and Rating Factors Idea Generator

Travel Insurance exercise

Class Exercise 1

Think of 5 things each that might be on a travel insurance policy

In groups collate your ideas

Compare with actual policy from the post office (TI_single_and_annual_policy.pdf)

Take the five most important benefits and suggest how you would structure the policy with limits, exclusions and excesses

Class Exercise 2

For each of the actual benefits offered under the post office policy estimate the cover limit that would be available on the middle level of the three policies

Car crash exercise

Imagine you are a small insurance company in Sevenoaks.

What would be the typical kind of insurance contracts you would write.

What factors would influence the mix of business

Outline the kind of claims that might arise after the crash - including claims made by other agencies

Discuss the factors that would influence the size of the claims

What steps might the insurance company have taken to mitigate the impact before and after the incident

Homework

Read chapter 1, and do the multiple choice questions from Chapter 1

Lecture 2

MCQ

Review MCQ questions set for last weeks homework

Notes - Chapter 1

Start with risk and rating factor idea generator - using it to generate ideas for a specific type of insurance policy say Marine

Notes - Chapter 2

Insurance Risk

Data Fitting

Go through the basic standard claim distributions in Formula 98

Normal distribution

Lognormal

Exponential

Pareto

Weibull

Burr

Gamma

Often when you know that distribution is one thing it is easier to model as another this file shows how the poisson distribution can be used to simulate the binomial distribution

Homework

Try and fit a standard data distribution to the data provided in the spreadsheet. This is quite hard but before you look at the e-lecture with the method it is good to try this for yourself.

Notes - Chapter 3

Make a start on GI environment

Lecture 3

Notes - Chapter 3

Do GI environment notes

Exercise

Syndicate exercise in excel spreadsheet

Reserving

Do the deterministic reserving section of the notes - BF, Cape Cod etc

We may also look at some exam type questions to develop question answering skills as well

Stochastic Reserving

Probably look at Bootstrapping first

Some introductory help with VBA for coursework

Hopefully get tome to introduce Mack model towards the end

Homework (in class if time)

Give class exercise of doing question 2 from the question sheet

Go through answers with class using a students response on visualiser - next week

Lecture 4

Stochastic Reserving

Start by reviewing the bootstrapping method so far and getting into the actual coding

Then we look at the Mack model summary of algebra

Other Notes

Round off deterministic reserving chapter with small number of topics at end of chapter

Do GI environment chapter (effectively from the start)

Lecture 5

Notes

Mack Model

Exam Technique

Look at past paper question for reserving if we have time (April 2017 Q5, Q8)

Notes

General Insurance environment

Lecture 6

Notes

Economic, climate and marketing

Exercise

Syndicate exercise in excel spreadsheet

Exam Technique

Look at past paper question for reserving if we have time (April 2017 Q5, Q8)

Background Maths

Copulas and Lundberg's inequality

Lecture 7

Notes

Accounting

Exam Technique

Look at past paper question for reserving if we have time (April 2017 Q5, Q8)

Background Maths

Copulas and Lundberg's inequality

Lecture 8

Notes

Finish off accounting ratios

Re-insurance

Exam Technique

Look at past paper question for reserving if we have time (April 2017 Q5, Q8)

Background Maths

Copulas and Lundberg's inequality

Lecture 9

Notes

Investment ALM

IFoA September 2018 Q2

Lecture 10

Notes

Capital Modeling

Solvency II