"Between January 2010 and October 2012, Mr Miah exploited weaknesses in the trading systems and controls at Aviva Investors in order to delay the booking and allocation of trades."
Published : 17/11/2015
Source: fca.org.uk
Monday 21 December 2015
Guide to Commercial Insurance Pricing - Part 1 - SME Portfolio
OVERVIEW OF COMMERCIAL INSURANCE
1. This post aims to provide an overview of the main features of Commercial insurance and the roles of portfolio managers and case underwriters in the pricing process.
2. Issues covered would also include the key differences between the Corporate and Small Medium Enterprise segments of Commercial Insurance and the drivers behind the market prices.
1. This post aims to provide an overview of the main features of Commercial insurance and the roles of portfolio managers and case underwriters in the pricing process.
2. Issues covered would also include the key differences between the Corporate and Small Medium Enterprise segments of Commercial Insurance and the drivers behind the market prices.
Actuarial Valuation for Pension Plans - Part 2 - Cost Methods
1. There are two widely used actuarial cost methods to calculate the Actuarial Accrued Liability (AAL) and Normal Cost (NC).
2.Pre-funded Defined Benefit Plans require a periodic Actuarial Valuation to determine the recommended contribution amount.
3. Actuaries apply a discount rate to future benefit payments in order to calculate a present value or value in today’s dollars.
Note: The higher the discount rate, the lower the present value, and vice versa.
COST METHODS - ENTRY AGE NORMAL (EAN) & PROJECTED UNIT CREDIT (PUC)
1. The AAL is based on projected pay and current service.
2. EAN method defines the normal cost as a level percent of pay from entry age until retirement (Puts more of the liability into the AAL and less into PVFNC)
3. PUC methods dicates the normal cost for each member increases as a percent of pay as the member. (puts less of the liability into the AAL and more into the PVFNC than EAN)
Actuarial Valuation for Pension Plans - Part 1 - Amortization Methods
TYPES OF PENSION PLANS
1. Defined Benefit Plan - Pension plan where a monthly benefit, payable at a certain retirement age, is defined in the plan.
2. Defined Contribution Plan - Pension plan in which specified contributions are made to each participant’s account. The contributions and interest earned on the investments serve as the total retirement amount for the retiree.
3. The equation of pension plan financing is Contributions(C) + Income (I) = Benefits (B) + Expenses (E)
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