IFoA SA3 case studies
IFoA SA3 · Put your knowledge to work in context.
SA3 General Insurance is a Specialist Advanced (SA) subject in the Institute and Faculty of Actuaries (IFoA) examination structure, as listed on the IFoA's exam-subjects pages. It is aimed at candidates who have completed the earlier stages of the IFoA qualification and are moving into specialist general insurance practice - typically actuaries working in or moving toward non-life pricing, reserving, capital, reinsurance or risk roles. The IFoA SA3 case studies are 5 cases and about 3,648 words.
1Motor bodily injury reserves after a discount rate change
A UK motor insurer holds £420m of undiscounted bodily injury reserves, with a weighted average settlement duration of 3.5 years. Sixty per cent of the reserve relates to claims above £250,000, where periodical payment orders and care costs dominate.
741 words, about 4 min2Choosing a Caribbean property catastrophe reinsurance structure
A Caribbean property insurer has a modelled 1-in-100 hurricane loss of 160m, a 1-in-200 loss of 210m and a 1-in-250 loss of 280m. It currently buys catastrophe excess of loss of 100m excess of 25m at a rate on line of 8%.
736 words, about 4 min3Launching an affirmative cyber product with silent cyber exposure
A mid-sized UK commercial insurer writes £300m of gross written premium across property, liability and professional indemnity. A review finds silent cyber exposure: 35% of property policies have no cyber exclusion, and 20% of liability policies could respond to a data breach.
714 words, about 4 min4IFRS 17 treatment of an onerous construction contract
A specialist engineering insurer writes a five-year construction all-risks policy with a single premium of £120m, paid upfront. At inception, expected claims are £70m, acquisition costs are £12m, and the risk adjustment for non-financial risk is £9m.
747 words, about 4 min5Evaluating an asbestos reinsurance commutation offer
A UK insurer's US asbestos liabilities are reserved at £200m undiscounted, with expected payments spread over 15 years. The actuarial central estimate is £200m, but the range is £140m to £320m.
710 words, about 4 min