CAS Exam 6C Fall 2019, Question 22
Study guide: Exam 6C
A property and casualty insurance company offers auto and property insurance products for personal and commercial lines of business. The products are sold through various distribution channels including a recently developed mobile application using sophisticated technology. The company operates in Ontario, Alberta, British Columbia and New Brunswick. The investment portfolio is composed primarily of common shares and government bonds.
Part a (0.5 points)
Discuss how an Own Risk and Solvency Assessment (ORSA) can help insurers assess their internal targets.
Part b (1.5 points)
Indicate whether each item below is accounted for in the MCT calculation and briefly explain whether it should be considered in the company's internal capital target.
- i. Cyber risk
- ii. Interest rate risk
- iii. Geographical diversification
Answer this question and see the worked solution