IAI SA4 case studies

IAI SA4 · Put your knowledge to work in context.

IAI SA4 is one of the Specialist Advanced (SA) subjects 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). SA4 is the specialist subject covering general insurance, life insurance, health and care insurance, and pensions and other benefits, each contributing an equal share of the syllabus. The IAI SA4 case studies are 5 cases and about 5,092 words.

Cyclone event: reserving, reinsurance recovery and solvency at day 45

Bharat Suraksha General Insurance writes ₹1,850 crore of gross written premium, of which 38% is commercial fire and engineering business concentrated in coastal industrial parks in Odisha and Gujarat. In October a severe cyclone makes landfall.

1,009 words, about 5 min 2

Participating fund: bonus declaration, estate support and Ind AS 117 transition

Suryodaya Life is a mid-sized Indian life insurer. Its participating fund is ₹12,400 crore, and 68% of it relates to policies sold between 2006 and 2010 with an aggregate sum assured of ₹4,100 crore.

1,022 words, about 5 min 3

Group health renewal: a 118% loss ratio, an acquisition and a moratorium deadline

Nirmaya Health Insurance covers a 22,000-life corporate group in IT services, with average age 31 and 4,100 family floaters. For FY24 the premium was ₹44.0 crore, claims paid ₹47.2 crore, the IBNR estimate rose by ₹2.9 crore and outstanding claims rose by ₹1.4 crore, giving a loss ratio of about 117% on earned premium.

983 words, about 5 min 4

Gratuity valuation: assumption challenge and a proposal to self-invest in equity

A listed Indian engineering company with 8,400 employees funds its gratuity liability partly through a group gratuity policy with an insurer carrying a fund value of ₹246 crore. The actuarial valuation at 31 March shows a defined benefit obligation of ₹312 crore, against ₹271 crore a year earlier.

1,062 words, about 5 min 5

Superannuation guarantee and annuity buyout: valuing an in-the-money option

Kaveri Superannuation Fund is a trust for 2,100 members of a pharmaceutical company, with contributions of 15% of basic salary and a current corpus of ₹640 crore. At retirement a member may commute one third and must use the balance to buy an annuity.

1,016 words, about 5 min