IAI SP8 study guide
IAI SP8 · Work through your exam, one topic at a time.
SP8 is a specialist qualification in general insurance for actuaries and senior insurance professionals, offered within the Institute of Actuaries of India's specialist certificate structure. It suits candidates who already have a grounding in actuarial mathematics and want to apply it to non-life work: product design, underwriting, pricing, reserving, reinsurance, capital and reporting. The IAI SP8 study guide has 9 sections and about 2,513 words.
01General insurance products and markets
This domain tests whether you can explain how general insurance products are constructed, distributed and regulated in India, and how product design choices change the risk transferred. General insurance is a contract of indemnity: the insured is restored to their pre-loss financial position, not better off.
309 words, about 2 min02Risk and insurance: risk identification, measurement and management
This domain tests risk taxonomy, qualitative risk process and quantitative risk measurement, including how insurers aggregate frequency-severity risk and tail risk. Pure risk has downside only; speculative risk has upside and downside.
315 words, about 2 min03Pricing and ratemaking for general insurance
This domain tests technical pricing: exposure bases, frequency-severity decomposition, rating factors, credibility, expenses, profit loads and the difference between technical and market prices. Pure premium = expected claim frequency x expected claim severity per unit of exposure.
301 words, about 2 min04Reserving and claims estimation
This domain tests estimation of outstanding claims, IBNR, IBNER, case reserves, development patterns, discounting and the communication of reserve uncertainty. The chain-ladder method applies age-to-age development factors to cumulative paid or incurred claims.
274 words, about 1 min05Reinsurance and risk transfer
This domain tests reinsurance structures, pricing, risk-transfer assessment, collateral and the regulatory framework for cessions. Proportional reinsurance shares premium and losses.
263 words, about 1 min06Capital modelling, solvency and regulation
This domain tests regulatory and economic capital, risk aggregation, diversification, model validation and the use of capital models in decision-making. Regulatory capital is the minimum required by IRDAI; economic capital is the amount needed to meet a chosen confidence level over a horizon.
274 words, about 1 min07Asset-liability management and investment for general insurers
This domain tests matching of assets and liabilities, investment constraints, liquidity and the treatment of policyholder and shareholder funds. General insurers hold assets against outstanding claims, unexpired risk reserves and capital.
251 words, about 1 min08Financial reporting and performance analysis
This domain tests general insurer financial statements, revenue and profit recognition, ratio analysis and the interpretation of reserve development. Ind AS 117, equivalent to IFRS 17, requires insurers to measure insurance contracts using fulfilment cash flows plus a contractual service margin.
273 words, about 1 min09Professionalism, ethics and communication
This domain tests the Actuaries Code, professional judgement, conflicts of interest, data integrity and communication of uncertainty to boards and regulators. The Actuaries Code requires integrity, competence, objectivity, confidentiality and communication.
253 words, about 1 min