IFoA SA1 case studies

IFoA SA1 · Put your knowledge to work in context.

SA1 - Specialist Advanced: Health and Care is one of the Institute and Faculty of Actuaries' Specialist Advanced (SA) subjects, taken late in the Fellowship pathway after the Core and Specialist Principles stages. It is aimed at actuaries who work with, or advise, health and care insurers, providers, payers or health systems, and who need to exercise judgement rather than apply a single prescribed method. The IFoA SA1 case studies are 5 cases and about 5,107 words.

Meridian Health: a flat 12% PMI increase on a deteriorating, ageing book

Meridian Health is a UK private medical insurer with 182,000 individual and small-group PMI members. The 2024 calendar-year loss ratio came in at 94% against a target of 78%.

1,004 words, about 5 min 2

Northgate Life: critical illness deterioration, IFRS 17 and an underwriting gap

Northgate Life writes level-term policies with an accelerated critical illness benefit. The in-force block is 26,000 policies with an average sum assured of £145,000.

1,016 words, about 5 min 3

A capitated MSK pathway with shared savings: the numbers behind the deal

You advise a UK health insurer contracting with a consortium of 14 physiotherapy practices to run a musculoskeletal pathway for a defined population of 62,000 members across two regions from 1 July. Proposed terms: a capitated fee of £34 per member per year; a baseline spend of £3.1m set from 2023 claims; 50/50 shared savings against that baseline in year one; an 80%/120% risk corridor; and a 24-month term.

947 words, about 5 min 4

Choosing between an aggregate stop-loss and a larger quota share on group IP

You are the capital actuary of a UK health insurer. The group income protection account has best-estimate reserves of £310m and a Solvency UK SCR of £140m, of which £70m is premium and claims risk.

1,022 words, about 5 min 5

A model error found three days before the audit committee

You are Chief Actuary of a mid-sized UK health insurer and a certified person under the Senior Managers and Certification Regime. On 20 January, reviewing the year-end valuation, you find that a spreadsheet projecting lapses for the individual PMI book has, since a model change in 2023, double-counted the effect of a planned 8% rate increase.

1,118 words, about 6 min