IAI SP7 study plan

Build cumulative paid and incurred claim triangles from a raw claims transaction table, and reconcile the two triangles to the general ledger totals.

Compute age-to-age development factors, select development patterns, and derive cumulative development factors and ultimate loss estimates using the basic chain ladder.

Diagnose the triangle for anomalies (negative increments, diagonal effects, large claims, changes in case reserving) and document the adjustment you would make and why.

Explain the assumptions underlying the chain ladder, including stable development, no calendar-year distortions, and proportionality of ultimates to reported claims, and state how you would test each one.

Apply Bornhuetter-Ferguson and Cape Cod methods to the same triangle, using an independent expected loss ratio, and reconcile the differences against the chain ladder result.

Derive an expected loss ratio from exposure and pricing data, and test its sensitivity to a plus or minus 10% change in the prior.

Build a frequency-severity estimate from claim counts and average costs, and compare its implied ultimate with the development-based estimate.

Quantify the effect of discounting and unallocated loss adjustment expense (ULAE) on the carried reserve, and show the calculation explicitly.

Compute the Mack chain ladder standard error and the coefficient of variation by accident year, and interpret the process versus parameter uncertainty components.

Run a bootstrap over-dispersed Poisson (ODP) simulation to produce a predictive distribution of reserves, and extract the 75th, 90th, and 99th percentiles.

Explain how reserve uncertainty and reserve run-off feed into capital requirements, including the treatment of one-year versus ultimate risk.

Draft a plain-language explanation of reserve risk for a non-actuarial board member, including why the mean and the 90th percentile differ.

Derive the solvency capital requirement for reserve and premium risk using a factor-based approach and a scenario-based approach, and compare the results.

Explain the aggregation of risk modules using correlations and copulas, and calculate the diversification benefit for a simple two-risk example.

Calibrate a stress scenario for a 1-in-200 adverse claims event and show its impact on the solvency ratio.

Outline the requirements for an internal model, including use test, statistical quality, calibration, and model governance.

Define a risk appetite statement with quantitative tolerances for reserve adequacy, solvency ratio, and reinsurance recoverable concentration.

Model the effect of a quota share treaty and a surplus treaty on reserves, capital, and the solvency ratio, and identify the break-even cession level.

Model an excess-of-loss program with reinstatements, and calculate the net cost and capital relief for a chosen attachment and limit.

Assess whether a reinsurance arrangement achieves meaningful risk transfer, applying the tests for significant risk transfer and deposit accounting.

Calculate reinsurance recoverables on paid and incurred claims, and adjust the reserve for expected recoverable bad debt and credit risk.

Analyze the effect of reinsurance on reserve uncertainty, including the dependency between ceded and retained losses and the treatment of reinstatement costs.

Explain the accounting and reserving treatment of deposit or financing arrangements that do not transfer significant insurance risk.

Evaluate commutation and collateral arrangements, and quantify their effect on balance sheet and capital.

Map the applicable supervisory requirements for general insurance reserving and solvency, including valuation of technical provisions, admissible assets, and solvency margin reporting.

Draft the reserving and capital sections of a board report, including data limitations, method choices, key judgments, and sensitivities.

Apply relevant actuarial professional standards, including peer review, documentation, and communication of uncertainty, to a worked reserving case.

Prepare responses to three supervisory-style questions on reserve adequacy and capital, using evidence from your earlier work.

Synthesize reserving, capital, reinsurance, and regulatory content into a single case study, and identify the interactions between them.

Complete a timed 3-hour mock examination under exam conditions using original practice questions.

Mark the mock against a structured mark scheme and list your three weakest syllabus areas with a remediation action for each.

Create a one-page formula and concept sheet covering development factors, Bornhuetter-Ferguson, Mack standard error, SCR aggregation, and risk transfer tests.