IAI SA1 case studies
IAI SA1 · Put your knowledge to work in context.
SA1 is a Specialist Advanced subject in the actuarial examination system administered by the Institute of Actuaries of India (IAI), a statutory body established under The Actuaries Act 2006 (35 of 2006) for regulation of the profession of Actuaries in India. The IAI site is the authoritative place to confirm the current syllabus, exam fees, examination dates, exam centres, question papers and solutions, exam policies and guidelines, and results, all of which are published under its Actuarial Examination section. The IAI SA1 case studies are 5 cases and about 3,342 words.
1Group indemnity renewal: large claims, shrinking membership and a broker ultimatum
A mid-sized Indian health insurer writes a group indemnity policy covering 12,400 employees and dependants of a manufacturing group for the policy year ending 31 March 2025. Earned premium was ₹52.0 crore and incurred claims ₹61.4 crore, a 118% incurred claim ratio.
654 words, about 3 min2Individual indemnity: uncapped room rent, provider concentration and a creeping claim ratio
An individual indemnity product sold through tied agency has two sum-insured tiers, ₹5 lakh and ₹10 lakh, with no room-rent cap and no co-payment; the cap was removed two years ago to match competitors. Portfolio earned premium is ₹180 crore and the incurred claim ratio has risen from 71% to 94% over three years.
679 words, about 3 min3Critical illness: cancer incidence double the pricing assumption and a closed quota-share treaty
A critical illness product covers 85,000 lives and has been in force six years; benefits are paid on diagnosis. Pricing assumed a cancer incidence of 1.4 per 1,000 and a 5% annual improvement in morbidity, with a 90-day waiting period and standard underwriting up to ₹25 lakh sum insured.
657 words, about 3 min4Senior-citizen guaranteed-renewable block: a favourable-looking claim ratio, a long guarantee and short assets
A senior-citizen hospitalisation product accepts entry ages 60-75, is guaranteed renewable for life and guarantees premium rates for three years. It covers 22,000 policyholders at an average age of 68 and an average premium of ₹38,000; it is the insurer's only product in this segment.
693 words, about 3 min5Year-end reserving: rapid growth, a new scheme, a TPA backlog and a disputed claim
An Indian health insurer grew 40% in policy year 2024, which ended on 31 December; earned premium was ₹410 crore. At the valuation date, paid claims for 2024 were ₹240 crore and case reserves ₹28 crore, so reported claims were ₹268 crore.
659 words, about 3 min