IAI SP7 study guide
IAI SP7 · Work through your exam, one topic at a time.
SP7 - General Insurance Reserving and Capital Assessment is a Specialist Principles subject in the Institute of Actuaries of India (IAI) actuarial examination. IAI is a statutory body established under The Actuaries Act 2006 (35 of 2006) for regulation of the profession of actuaries in India, and it publishes the syllabus, study material and past question papers and solutions for its actuarial examinations. The IAI SP7 study guide has 4 sections and about 1,197 words.
01Reserving for general insurance liabilities: technical provisions, claims development, methods and uncertainty
This domain asks you to turn claims history into a defensible central estimate of general insurance liabilities and to explain the uncertainty around it. SP7 expects you to know how technical provisions are built, how development triangles behave, and when a reserving method is inappropriate.
318 words, about 2 min02Capital assessment and solvency: risk-based capital, internal models and risk appetite
You must explain how a general insurer sets regulatory and economic capital, how risks are aggregated, and how an internal model and risk appetite are governed. Capital is the excess of eligible assets over liabilities.
278 words, about 1 min03Reinsurance and its effect on reserves, capital and risk transfer
This domain tests how reinsurance changes the gross reserve, the recoverable asset, the net capital position, and whether risk has genuinely been transferred. Proportional treaties (quota share, surplus) share premiums and claims by a fixed proportion.
300 words, about 2 min04Regulatory, reporting and professional context: supervision, actuarial standards and communication
You must place reserving and capital work in the Indian regulatory and professional framework, and communicate results clearly enough for Boards, auditors, and the regulator. IRDAI sets solvency, valuation, and reporting requirements; the Appointed Actuary signs the statutory actuarial valuation and advises on technical provisions and solvency.
301 words, about 2 min