IAI SP8 study plan

Map the UK general insurance market structure: list the main distribution channels (brokers, MGAs, direct, aggregators) and state one regulatory or commercial implication of each

Distinguish indemnity, valued, agreed-value and new-for-old bases of claim settlement, and apply each to a short motor and property scenario

Build a risk taxonomy covering pure/speculative, diversifiable/systematic and frequency/severity, then classify twelve given perils into it

Explain the risk management cycle (identify, measure, control, finance, monitor) and position three named control measures against it

Calculate expected loss and standard deviation for a simple two-outcome risk and interpret what the result means for an insurer writing many similar risks

Derive a gross premium from first principles: expected loss ratio build-up, expense loading, profit and contingency margin, and show the arithmetic line by line

Compute and interpret loss ratio, expense ratio and combined ratio from a supplied set of underwriting figures, and state what a combined ratio above 100% implies

Apply exposure rating and experience rating to the same risk class and explain when each is more credible

Describe how deductibles, policy limits and coinsurance change the pure premium for a property portfolio, with a numeric illustration for each

Explain the role of credibility weighting and outline the effect of a small sample on a rate indication

Distinguish case reserves, IBNR and IBNER, and allocate a list of ten claims-handling events to the correct category

Project ultimate losses for a small triangle using both chain-ladder and an expected-loss-ratio (Bornhuetter-Ferguson style) approach, and compare the two answers

Calculate the loss development factor for each age-to-age period and explain how a change in the selected factor changes the reserve

Identify the main sources of reserving uncertainty (case-strength, mix change, latency, discounting) and rank them for a long-tail liability class

Explain the effect of discounting for inflation and of reinsurance recoveries on the carried reserve

Distinguish proportional (quota share, surplus) from non-proportional (excess of loss, stop loss) reinsurance and match each to a stated insurer objective

Calculate the cession and net retained loss for a quota share with a commission, and for an excess-of-loss layer with a stated attachment and limit, on three sample losses

Explain how reinsurance changes the cedant's capital requirement and volatility of results, and identify the credit risk it introduces

Describe facultative versus treaty placement and when an insurer would use each

Outline the main reinsurance contract clauses (follow the settlements, cut-through, reinstatement) and their practical effect

Explain the purpose of a capital model and distinguish regulatory, economic and rating-agency capital

Describe the main risk modules of a typical internal model (underwriting, reserve, market, credit, operational) and how they are aggregated, including the role of dependence and copulas

Interpret a stated solvency ratio and calculate the effect on it of a 20% increase in required capital and of a 10% fall in eligible own funds

Outline the key features of the Solvency II framework: pillars, SCR and MCR, own-risk-and-solvency assessment, and reporting

Identify the main limitations of capital models and how model risk is governed

Explain how the duration and liquidity profile of general insurance liabilities differ from life business and what that implies for the investment strategy

Match asset classes to liability characteristics and justify a strategic asset allocation for a short-tail and a long-tail insurer

Calculate investment return on a simple portfolio and show its effect on the combined ratio and on surplus

Interpret a set of published financial statements for a general insurer: identify premiums earned, claims incurred, expense and investment result, and compute return on capital

Explain the difference between statutory and economic reporting bases and why the gap matters to a regulator

Apply a recognised ethical decision framework to two short scenarios involving conflicted advice and use of non-public information, and state the recommended action with reasoning

Explain the professional standards expected of an actuary in communicating results to a board, including how to present uncertainty and avoid misleading presentation

Draft a 300-word board summary of a reserving result that states the estimate, the range and the key judgements without overstating confidence

Review a poorly written technical note and rewrite three sentences for clarity, accuracy and appropriate caveats

Identify the main conflicts of interest in insurance distribution and the controls that mitigate them

Complete a timed mixed-topic mock of at least 40 questions drawn from pricing, reserving and capital, and record the score by domain

Re-derive from memory the gross premium build-up, the chain-ladder ultimate and the solvency ratio, without notes, and check each against the earlier workbooks

Revisit every goal from weeks 1 to 7 and mark each as secure, shaky or not understood, then schedule targeted revision for the shaky items

Write out the five most common calculation errors you made across the plan and the check you will use to avoid each

Produce a one-page formula sheet covering premium build-up, combined ratio, development factors, cession calculations and solvency ratio