MODULES

Aim
The aim of the General Insurance course is to generate newly qualified actuaries with the ability to apply the actuarial scientific method and actuarial techniques, so that suitably trained actuaries are available to assist Hungarian general insurers to operate on sound financial lines.

Objectives
With the reference to insurers carrying on general insurance business in Hungary, the trainee actuary will, on completion of the module, be able to:

• demonstrate a knowledge of the underlying framework, i.e.
• define the principal terms in use in general insurance business,
• describe the main features of the major types of general insurance market,
• describe the main features of Hungarian general insurance market,
• state the principal tax, legislative and supervisory controls on insurers carrying on general insurance business, within Hungarian context,
• describe the main features of the arrangements for the protection of policyholders,
• describe the principles of accounting for general insurance business,
• describe the major areas of risk and uncertainty in general insurance business,
• describe the operation of the main types of reinsurance contract used in general insurance business,
• state the principles of investment for general business insurers’ assets,
• apply the actuarial philosophy and the actuarial scientific method to the financial management of general insurance business in
• describing valuation data and verification procedures,
• analyzing the experience of a general business insurer for the purposes of determining pricing and valuation assumptions and identifying the main sources of profit,
• assessing the cost of potential claims and expenses under a general insurance contract, in terms of emerging costs and in terms of discounted values, for the purposes of product pricing,
• determining the values of insurance liabilities of a general business insurer and value of the assets, in terms of emerging costs and in terms of discounted values, for the purposes of
• interpreting the accounts of a general business insurer,
• establishing the impact of the liabilities of a general business insurer on the choice and management of assets,
• modeling the uncertainty in claim frequency and amount,
• analyze the straightforward problems in terms of the actuarial scientific method, to a level where they may be processed by appropriate actuarial techniques, i.e.
• determine appropriate pricing bases for general insurance contracts, having regard to requirements for a fair return on capital and to underwriting and reinsurance considerations,
• determine appropriate bases for valuing the assets and liabilities of a general business insurer,
• determine appropriate reinsurance arrangements for a general business insurer,
• analyze the asset-liability matching requirements of a general business insurer and show how actuarial techniques may be used to develop appropriate strategies,