FSA courses

GI 301

Further Topics in General Insurance

2 discussions

Explanation

GI 301: Excess-layer data do not show the ground-up distribution directly

A reinsurance or excess-limit dataset can be truncated or censored by contract terms. The attachment and limit determine which parts of the loss are observed.

Original practice scenario

For an original 1m layer above 1m, a 3m ground-up loss produces a capped 1m payment. Several larger ground-up losses can generate that same payment. Explain why fitting a ground-up distribution to the capped payments without adjustment loses information.

Study check

Write the assumptions, the decision being supported and one limitation. Use the current course syllabus for the required terminology and scope; this introductory guide is not a complete course summary.

Reading sources

Official syllabus and resources

ActNet editorial guide · October 1, 2026 · Original illustrative examples.

0 repliesOct 1

Explanation

GI 301: Reserve variability needs a model and a stated horizon

A reserve estimate and a predictive distribution are different outputs. State whether uncertainty concerns ultimate losses, one-year development or another quantity, and explain which assumptions create the distribution.

Original practice scenario

Compare an original 10m point estimate with a scenario increasing severity by 10%. The resulting 11m is a sensitivity result, not a percentile without a probability model. Add a diagnostic for development stability before choosing a stochastic approach.

Study check

Reading sources

Official syllabus and resources

ActNet editorial guide · October 1, 2026 · Original illustrative examples.

0 repliesOct 1