CAS Exam 6C Spring 2015, Question 17
Study guide: Exam 6C
Part a (0.5 points)
In recent years, increased frequency and severity of catastrophic events have been observed by insurers and reinsurers. Briefly describe one major driver for increased frequency and one major driver for increased severity.
Part b (1.5 points)
Identify and briefly describe three factors that will impact the tolerance level on the stressed A.M. Best Capital Adequacy Ratio (BCAR) catastrophe analysis.
Part c (0.5 points)
Compare and contrast the approach used to test catastrophe risk under BCAR and Dynamic Capital Adequacy Test.
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