Interview experience for a LI pricing
- This topic is empty.
-
Posts
-
Arpit Surana
One of the person has shared these questions that were asked her in the interview for a pricing role in a life insurance company. Technical questions were If mortality is high or low. How will it affect the various insurance products?
Relation between expenses and mortality?
Relationship of interest and different life insurance products?
How is the graph of the reserves for various assurance products?
Meaning of Convexity (CT1)
Types of Assurances plans?
If anyone could answer the questions it would be great help. Specifically graph one
Hope it helps
Reserves graph answer: I guess no. Actually sometimes the questions asked in the interview is just to check how you answer or how u think. Not on what you answer or correct. So, I guess same goes with this question
Best answer would be,
Since every plan can have different sum assured, tenure, age, mortality, benefit, rider, etc. There can’t be any fixed correct answer.
And since we making reserves mainly depend on risk coverage and sum assured. So if assuming everything to be same.
The reserves of endowment would be the highest, then whole, then pure, then term.
Any other answer, is most welcomed
preetiadlakha
arpit wrote:One of the person has shared these questions that were asked her in the interview for a pricing role in a life insurance company. Technical questions were
If mortality is high or low. How will it affect the various insurance products?
Relation between expenses and mortality?
Relationship of interest and different life insurance products?
How is the graph of the reserves for various assurance products?
Meaning of Convexity (CT1)
Types of Assurances plans?
If anyone could answer the questions it would be great help. Specifically graph one
Hope it helps
What the answer of first question .. mortality is high and low ??
Sent from my Lenovo K33a42 using Tapatalk
What’s the answer of first question about that high and low mortality? Sent from my Lenovo K33a42 using Tapatalk
tanmay
preetiadlakha wrote:
What’s the answer of first question about that high and low mortality?Sent from my Lenovo K33a42 using Tapatalk
If the mortality is high, the premium will be high.
vamarungta
How did you reach this conclusion? Could you please elaborate? tanmay wrote:preetiadlakha wrote:
What’s the answer of first question about that high and low mortality?Sent from my Lenovo K33a42 using Tapatalk
If the mortality is high, the premium will be high.
Sent from my ONEPLUS A5000 using
Actuarial Info mobile appvamarungta wrote:How did you reach this conclusion? Could you please elaborate?
tanmay wrote:preetiadlakha wrote:
What’s the answer of first question about that high and low mortality?Sent from my Lenovo K33a42 using Tapatalk
If the mortality is high, the premium will be high.
Sent from my ONEPLUS A5000 using
Actuarial Info mobile appIf mortality increases the prices for various products increases, except for pure.
Because in pure insurance, the company would pay only if you have survived n number of years. So, if mortality increases more persons will die in n period. Thereby, less people surviving and hence lower the payments made by the company, so the price would eventually decrease for pure.
Sent from my Redmi Note 5 Pro using Tapatalk
divasthareja
As per my understanding about the subject. Following must the answers to the respective questions asked above: 1. If the mortality rate’s are high, it will increase the expected cost of insurance for the company & hence will increase the premiums to be charged.This will impact Endowment assurance, Term assurance, whole life assurance products. If mortality rate’s are low then pure endownment & Annuity products(Pension) will have a higher premium being charged.
In case of Unit linked,most of the risk is being borne by the policyholder hence he will only have to pay Mortality charge* (SAR》0) which will increase due to high mortality rate’s & has to pay a higher premium.
2. As such there is no direct relationship between expenses & mortality.However if at the time of pricing company forecast a higher mortality, it will charge a higher initial expense so as to recoup the cost as soon as possible.
3.An interest rate has an inverse relationship with the present value of the benefits. Acc to different life Assurance products an increase in interest rate will reduce the expected cost of benefit payable.
4.I performed a trend Analysis studying the graph of Endownment assurance & Term assurance, as per my observation
A graph for Endownment assurance shows an increasing trend upto a certain duration and then few years before maturity becomes parallel to X-axis.
A graph for Term assurance is Normally Distributed.
Hope it helps
😊 Sent from my SM-G950F using
Actuarial Info mobile appWow! That was great Thanks
Sent from my Redmi Note 5 Pro using Tapatalk
- You must be logged in to reply to this topic.