CAS Exam 6C Fall 2019, Question 26

Study guide: Exam 6C

Part a (0.5 points)

Identify an example of Events Not in Data (ENID) for each of the following:

• i. With a negative (unfavourable) outcome for a property and casualty insurance company
• ii. With a positive (favourable) outcome for a property and casualty insurance company

Part b (0.75 points)

Briefly describe three reasons it might be useful to try to identify potential ENID, even if it is not a necessary step to calculate the ENID loading.

Answer this question and see the worked solution

Concepts tested

• Events Not in Data
• Solvency II
• Frequency-Severity Models
• Fulfilment Cash Flows

More questions from this set

• CAS Exam 6C Fall 2019, Question 25
• CAS Exam 6C Fall 2019, Question 27