The following information regarding actuarial interview questions which may be for Actuarial Analyst or Trainee in a Life Insurance company has been compiled from various discussion forums online, Job portals such as Glassdoor and by talking to some industry professionals working in LI actuarial role.
- Name a few life insurance products.
- Can you think of a new type of life insurance product that can be brought in the market?
- What are principles of Life insurance?
- Why do you want to work in Life Insurance?
- What is discounted mean term and convexity?
- What is the difference between pricing and reserving ?
- What do you mean by pricing basis? Give some examples.
- What are participating Life insurance policies?
- What are different types of bonuses in Life insurance policies? Which one is the highest for insured?
- What risks does an insurer face when offering life insurance to policyholders? How does life insurance company hedge against these risks?
- What are actuarial life tables and what is their use?
- Who publishes life tables for Indian insurers?
- Give any 5 Indian Life insurers names.
- Differentiate between multiple state model and multiple risks model.
- Arrange in order of decreasing premium the following products : Term insurance , Whole life insurance ,Endowment Insurance , Pure Endowment policy.
- Which LI Product charges level premium?
- Give two examples with explanation for riders attached to LI policies.
- Differentiate between a surrender and lapse of a policy.
- Explain Net Present value and Internal rate of return – Which is a better measure of valuing projects?
- What is duration?
- What is the difference between Payback Period and discounted payback period?
- What are different types of interest rates?
- What are reserves ? Why does a company need them?
- What is elasticity of price? State its one application in real world.
- What are different methods of calculating reserves (Prospective and retrospective)? Under what condition are they equal?
- What are net premium reserves? Why are they used in the industry?
- D/B level premium , earned premium, written premium , Gross Premium and Net premium. Which out of these is also called as Office premium?
- Difference between assurance and insurance.
- How are life insurance products priced? What are rating factors?
- What are two methods of pricing the insurance contracts? (Present value reserving and Profit testing)
- What are ULIPs? What are the risks involved in them?
- What are different types of annuities – (Individual life and joint and survivor) ?
- D/B ULIPs and mutual funds.
- What is death strain at risk?
- What is interest rate risk?
- What are variable life annuities?
You should also be prepared for some excel related questions like:
- Use of vlookup
- Limitations of vlookup
- What if analysis
- Goal seek
- Text functions
- Advanced functions
- Scenario manager
- Pivot charts
- Excel shortcuts
Discuss your doubts / concerns about Excel functions on our forums here.
Other than the above specific questions, you should always be ready for the following!
- Questions related to your current role if you are already working somewhere.
- Current Affairs type brainstorming questions like Impact of COVID-19 on Life Insurance sector.
- Questions from personal projects/Research Papers you did and mentioned in your resume.
- Questions related to your family background.
- Questions about that particular company’s products for which you are being interviewed.
- Questions from all the Actuarial exams that you have cleared.
- Briefing the interviewer through your resume.
- Telling them about Your strengths and weaknesses when asked!
We have covered many Life Insurance role Actuarial interview questions in this article. Do give them a read!
It is always good to ask any doubts regarding the role you are being interviewed for , feedback of how the interview went, or any other question that you have in mind. This show your curiosity about the role and will make you look good if you ask meaningful questions. Some of the questions you can ask the interviewer can be found here.
Along with LI technical interview questions, make sure the answer to this question is truthful and not made up. Also be prepared to describe the interviewer, if they ask, situations which you ever encountered that display your strength and weaknesses. You might want to think about your strengths and weaknesses by taking an idea from here.
All the best for your interview!
Let us know in the comments section below what life insurance questions other than those mentioned above were you asked in your interview!
You can find list of general insurance interview questions here.
You can find other non-specific to the domain actuarial interview questions here.