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June 16, 2019 at 3:55 pm #23461
Arpit Surana
Participant
1. Why is reinsurance needed for a life insurance company?

2.What are the reasons of a company making losses?

3. What are the types of policies sold by a life insurance company?

4.What are unit-linked contracts?

5.What are with profits contract?

6.If you have the cashflows of three portfolios, how will you make out which one is the most profitable?

7.If a person takes a loan of 1 lakh. The interest of the loan is 10% and the EMI paid is 5000 per year, then how long will it take for that person to pay back the loan?

8. 2 options –

Option 1 -Probability of a person A dying and the probability of a person B dying.

Option 2- Probability of a person A dying or probability of a person B dying.

Which option has a higher probability?

9.What are your hobbies?

10.Any questions for us?
June 16, 2019 at 3:57 pm #24726
preetiadlakha
Participant
Please answer question 2.

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June 16, 2019 at 3:59 pm #24727
preetiadlakha
Participant
Answer of question 8 is option 1???

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June 16, 2019 at 4:29 pm #24728
sushantgupta
Participant
~~preetiadlakha wrote:~~

Answer of question 8 is option 1???

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I think it’s option 2

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June 16, 2019 at 4:36 pm #24729
sushantgupta
Participant
For Q6. I think the answer will be by finding the NPV(Net present value) of all the 3 cash flows and the cash flow having high NPV will be the most profitable . Do let me correct if I m wrong .

Thanks

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June 16, 2019 at 4:52 pm #24730
sushantgupta
Participant
In Q7 I think something is wrong .

EMI of 5000 paid during the year seems to be wrong in statement.

Isn’t it ?

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June 16, 2019 at 4:53 pm #24731
preetiadlakha
Participant
~~sushantgupta wrote:~~

~~preetiadlakha wrote:~~

Answer of question 8 is option 1???

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I think it’s option 2

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How?

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June 16, 2019 at 5:04 pm #24732
sushantgupta
Participant
Because the prob. of A dying does not depends on the death of B and vice- versa. Therefore intersection of the two prob. will be 0.

On the other hand in option 2 , we will add the individual prob. of A dying and B dying .

Thus in option 1 , I think the prob. will be 0 and in option 2 , we might get some prob. which will be greater than 0.

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June 24, 2019 at 4:27 pm #24733
fenamsogani
Participant
Answer of question no 2

First major thing which cause loss is underwriting. Underwriting play critical role for insurance company for making profit. example of poor underwriting is adverse selection.

second thing is Asset liability mismanagement.

without market research enter into new product segment. so in case of failure it impact their solvency.

variable (increasingly) indirect cost.
June 26, 2019 at 7:45 am #24734
sj12345
Participant
According to me it’s option 2

Since under option 1 they are saying both dying at same time

But under 2 the probability of either of them dying is asked

~~preetiadlakha wrote:~~

Answer of question 8 is option 1???

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