IAI SP2 case studies
IAI SP2 · Put your knowledge to work in context.
SP2 is a specialist paper in the Insurance Institute of India's Associate (licentiate-to-fellowship) examination ladder, focused on life insurance practice rather than general insurance principles. It suits candidates who already work in a life insurer, broker, or distribution role and want a recognised credential showing command of product design, underwriting, servicing, claims, regulation, and the financial mechanics behind a life book. The IAI SP2 case studies are 5 cases and about 5,640 words.
1SecureGrowth 20: repricing a participating endowment after a 170 bp fall in yields
Summit Life's flagship product, SecureGrowth 20, is a 20-year participating endowment sold at an average annual premium of ₹42,000 for a ₹5,00,000 sum assured. It was priced 30 months ago on a gross investment return of 8.0%, an expense overrun of 12% of first-year premium, mortality at 90% of the standard table and a 6% first-year lapse rate.
1,056 words, about 5 min2Rated term application: a 47-year-old with uncontrolled diabetes, hypertension and conflicting disclosures
Rohan Mehta, 47, applies for a 30-year level term plan with a sum assured of ₹1.5 crore, to run to his intended retirement at 77. His annual income is ₹24 lakh as a regional sales manager; his net worth is ₹60 lakh, including a flat with a ₹38 lakh mortgage; his employer provides ₹50 lakh of group term cover.
1,143 words, about 6 min3A 13-month death claim with a pre-proposal hospitalisation and a later revival
Mr Arvind Nair, aged 52, died 13 months and 6 days after his ₹75 lakh, 25-year term policy commenced on 4 May 2023. The annual premium of ₹1.6 lakh was paid by cheque drawn on his own current account.
1,167 words, about 6 min4Branch conduct review: 64% persistency, replacement churning and a top producer who cannot be challenged
At the Kochi branch of a life insurer, 62 agents produced ₹26 crore of annualised first-year premium last year against a ₹30 crore target. Three agents accounted for 58% of the premium.
1,115 words, about 6 min5Year-end valuation pressure: assumption changes, a solvency target and a distributor incentive not in the basis
You are the Appointed Actuary of a mid-sized life insurer. It is 14 February and the year-end statutory valuation must be signed by 28 February.
1,159 words, about 6 min