Tumblr Are you planning to appear for CT6 in the current examination diet? I tried to accommodate here all the data which I could. CT6- statistical methods is a subject which gives you an exposure to the general insurance side of actuarial work. It includes setting the premium for general insurance policies, checking whether the policies are going to ruin the company and also to set reserves for liabilities.
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Tumblr Are you an Actuarial Science Aspirant? Are you planning to give an interview to a General Insurance company? CT-6 is a very interesting subject to study.
But when it comes to the interview preparation are you scared of what questions will come from this subject and how to prepare for the interview? The idea of going through the entire study material for an interview might seem to be very daunting.
But from now you can keep all those worries aside. In this article, I have put together some questions that are likely to be asked by CT-6 in an interview. CT-6 brings to you the basics one must know about the General Insurance. Since you are reading this article regarding the interview questions related to CT-6 I presume you guys know the content of this subject. Here is a list of some questions and answers that could be asked from CT What is credibility theory? What is the use of credibility theory?
Ans: Credibility theory is a tool used by Actuaries to assess the risk when examining the data. Actuaries make mathematical models for making estimates based on the historical data. On credibility theory, there will be a historical data and base estimate on the basis of which the risks are calculated. This theory helps actuaries understand the risk and it limits the exposure of insurance companies to claims and losses. For example, the insurance company analyzes the risk of a new insurance policy by analyzing the data of a previous similar insurance policy.
What is meant by reinsurance? Just like we get ourselves insured, the insurance companies also get themselves insured using reinsurance. For instance, a heavy claim comes to an insurance company and then the company can share its financial burden with the reinsurer. So reinsurance protects an insurance company from large losses. Policyholders pay a premium to the insurance companies in exchange for the protection.
Similarly, a company that purchases reinsurance pays a premium to the reinsurance company, who in exchange would pay a share of the claims incurred by the purchasing company. Ans: Under Bayesian methods, the prior distribution is fixed before any data are observed but in EBCT model the estimation is based on data only without the use of statistical distribution. Can you please give me a brief introduction to ruin theory?
Ans: Ruin theory is also known as risk theory. It calculates the probability of ruin for an insurance company. So once we assess the risk the company can find appropriate measures to mitigate the risk. What is meant by premium loading? Ans: Premium loading refers to the amount an insurer needs to cover its expenses and generate profit. Fair premium is determined using premium loading and pure premium. What is the application of the Generalized Linear Model?
Ans: The Generalized Linear Model is a generalization of the general linear model. In general linear model, a dependent variable must be linearly associated with values on the independent variables whereas the relationship in the Generalized Linear Model GLM between the dependent variable and independent variables can be non-linear.
In Generalized Linear Model, due to the categorical dependent variable, we cannot find out the linear relationship between dependent and independent variables. Linear regressions can be used in business to evaluate trends and make estimates or forecasts. What is the application of Time Series? In time series analysis, data must be measured over fixed time intervals that form trends, cycles, and seasonal variances.
Measurements at random intervals lose the ability to predict future events. What is meant by Simulation? Ans: It is the technique of generating random numbers by using a base distribution- Uniform 0,1. It is used for modeling the risk or uncertainty of a system.
Some advantages and disadvantages of Pseudo-Random Numbers are: Advantages: Generated through the computer algorithm It is fixed and hence can be reproduced Disadvantages Some advantages and disadvantages of Truly Random Numbers are: Advantages Useful in the lottery, casinos, online games, art, music etc.
CT6 Statistical Methods
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