IAI SA7 case studies

IAI SA7 · Put your knowledge to work in context.

SA7 is one of the Specialist Advanced subjects in the actuarial examination system run by the Institute of Actuaries of India (IAI). IAI is a statutory body established under The Actuaries Act 2006 (35 of 2006), whose provisions came into force on 10 November 2006 under a Government of India notification issued through the Ministry of Finance, Department of Economic Affairs. The IAI SA7 case studies are 5 cases and about 6,061 words.

Reinsurance Counterparty Collateral Shortfall Ahead of a Product Launch

Meridian Life is a mid-sized insurer with a solvency ratio of 168% against a board risk appetite floor of 150%. Sixty-two per cent of its mortality and morbidity risk is ceded to a single reinsurer, Aster Re, rated A− with a negative outlook.

1,136 words, about 6 min 2

Allocating Group Diversification Benefit Between Two Subsidiaries

Kavach Group owns a life subsidiary and a general insurance subsidiary. The internal model gives standalone economic capital of ₹3,200 crore for life and ₹2,100 crore for general, against group economic capital of ₹3,700 crore - a diversification benefit of ₹1,600 crore, or 30%.

1,195 words, about 6 min 3

Ransomware Attack on a Claims Platform Before a Catastrophe

Sahyog General's claims platform was encrypted by ransomware on a Thursday night. The firm's backups are nine days old and the restore has not been tested at scale.

1,249 words, about 6 min 4

Collateral Calls on a Leveraged Liability Hedging Portfolio

Northgate Pension Scheme has £2.1 billion of assets. Forty per cent sits in pooled liability-driven investment funds with roughly three times leverage, used to hedge interest rate and inflation exposure.

1,291 words, about 6 min 5

A Management Override to a Catastrophe Model Before a Large Account Renewal

Arin Insurance uses a vendor catastrophe model for its property portfolio. Independent validation, completed last month, found that the model's convective storm hazard in one inland region is materially understated for short-return-period events and that the region's loss costs are therefore unreliable, though the model performs acceptably at the tail.

1,190 words, about 6 min