IAI CP3 case studies

IAI CP3 · Put your knowledge to work in context.

The IAI CP3 (Certified Professional 3) is a professional-level actuarial credential awarded by the Institute of Actuaries of India. It sits above the earlier professional stages and is aimed at actuaries who have moved beyond core technical subjects into applied practice: risk management, specialist practice areas, professionalism, and business awareness. The IAI CP3 case studies are 5 cases and about 4,432 words.

Participating fund bonus decision under solvency and liquidity strain

A mid-sized life insurer's participating fund holds a legacy block of 20-year endowment policies. For the cohort maturing next quarter, the asset share is 96% of the sum assured plus declared bonuses, while the fund's smoothed book value is 104% of the same cohort's policy liabilities.

921 words, about 5 min 2

DB scheme partial buy-in versus buyout with a weakening sponsor

A defined benefit pension scheme sponsored by a listed auto-components manufacturer has a funding deficit of INR 4.2 billion on a technical provisions basis and INR 6.8 billion on a buyout basis. The sponsor's covenant has weakened: EBITDA fell 35% last year and a covenant review moved the sponsor to the regulator's weaker category.

983 words, about 5 min 3

Motor third-party reserve strengthening with disputed reinsurance recoveries

A general insurer writes commercial motor and motor third-party liability in India. In the last two years, courts have awarded higher amounts for disability and loss of dependency, and claims settlement times have lengthened.

880 words, about 4 min 4

Fairness and explainability review of a health underwriting model

A health insurer has built a gradient-boosted model to predict 12-month claim propensity for individual hospital indemnity policies. The model uses 42 features, including age, prior claims, policy tenure, pin code, occupation category, hospital network usage and a third-party credit score.

817 words, about 4 min 5

Duration mismatch and liquidity pressure in a short-tail health portfolio

A health and care insurer has a portfolio of short-tail hospital cash and critical illness policies. Claims are paid on average within 45 days, but a new hospital network agreement could create a one-off backlog.

831 words, about 4 min