Sample interview questions: How do you evaluate the financial implications of economic reforms or restructuring on insurance portfolios using actuarial analysis?
Sample answer:
Actuarial Analysis for Evaluating Financial Implications of Economic Reforms/Restructuring on Insurance Portfolios:
- Assess Exposure: Quantify the potential impact of reforms/restructuring on policyholder demographics, coverage levels, and premium rates.
- Project Cash Flows: Estimate future cash inflows and outflows, considering changes in premiums, claims experience, and investment returns.
- Simulate Scenarios: Develop multiple scenarios based on different assumptions about economic conditions, regulatory changes, and market trends.
- Calculate Liabilities and Reserves: Determine the future financial obligations to policyholders based on projected cash flows and assumptions about mortality, morbidity, and investment rates.
- Assess Risk and Capital Adequacy: Evaluate the potential impact on insurance reserves, capital requirements, and solvency ratios.
- Determine Pricing and Coverage Implications: Provide insights into how reforms/restructuring may affect insurance premiums, coverage availabilit… Read full answer