IFoA SP7 case studies
IFoA SP7 · Put your knowledge to work in context.
SP7 is the Institute and Faculty of Actuaries' Specialist Principles exam in general insurance. It is aimed at candidates who already have a grounding in actuarial mathematics and are moving into, or consolidating a role in, non-life work: pricing, reserving, capital, risk, or consultancy serving general insurers. The IFoA SP7 case studies are 5 cases and about 4,841 words.
1Telematics Motor Pricing Under Inflation and Competitive Pressure
Northbridge Motor is a UK personal lines insurer writing 12,000 telematics policies, mostly drivers aged 18–24. Its current private car account has a loss ratio of 78% on earned premium of £14m, and the chief actuary has been asked to sign off a proposed 6% rate increase for renewal business.
1,024 words, about 5 min2Employers' Liability Reserve Adequacy After a Causation Ruling
Kingsway Liability writes UK employers' liability and public liability. At 31 December its net reserves are £420m: case reserves £240m and IBNR £180m, on earned premium of £80m.
1,047 words, about 5 min3Catastrophe Reinsurance Renewal and Sidecar Capital Relief
Arden Property is a UK regional insurer with £250m property GWP, concentrated in commercial and SME property. Its catastrophe programme is £100m xs £25m per event, with one free reinstatement and subsequent reinstatements at 100% additional premium pro rata.
952 words, about 5 min4Cyber Model Uncertainty and Dividend Affordability
Meridian Specialty is a Lloyd's-style insurer writing cyber, professional indemnity and specialty property. Its Solvency II own funds are £380m, SCR £300m (ratio 127%), and MCR £120m.
917 words, about 5 min5Reserve Release, Member Rebate and Professional Pressure
The board of a mutual general insurer is considering releasing £25m from its outstanding claims reserves to fund a member rebate and a one-off dividend. Reserves are £600m, of which £70m is an explicit prudential margin above the actuarial central estimate.
901 words, about 5 min