CAA Associate Actuary (China) cheat sheet
CAA Associate Actuary (China) · Keep the key ideas within reach.
Integrated quantitative and business foundations
State contract timing and assumptions before selecting a formula.
Distinguish effective, nominal and continuously compounded rates.
Update probabilities using both prior weights and evidence likelihoods.
A modeled reserve is not a guarantee or complete statutory solvency measure.
Define incremental cash flows and the valuation date.
Discount rate, cash-flow timing and risk assumptions must be consistent.
NPV, IRR, payback and accounting return measure different things.
Expected value does not eliminate downside or estimation uncertainty.
Supplied model rates are not current market or tax facts.
Expected loss is an average under a stated model, not a maximum.
VaR does not bound losses or fully describe the tail.
Funding and market liquidity can deteriorate together.
Validate models and monitor assumptions, data and intended use.
Read the actual coverage, limits, exclusions and duties.
Insurance transfers specified financial consequences, not the physical hazard itself.
Claims calculations require an explicit deductible and limit convention.
Reinsurance does not automatically release the original insurer from its policyholder obligation.