CM1A Unit Linked Profit Testing Explained Step by Step | Bid Offer Spread, Non Unit Fund скачать в хорошем качестве

CM1A Unit Linked Profit Testing Explained Step by Step | Bid Offer Spread, Non Unit Fund

CM1A Unit Linked Profit Testing Explained Step by Step | Bid Offer Spread, Non Unit Fund Linkedin   / pratap-padhi   Website https://smearseducation.com/ Join my FREE Skool Community to get all updates and support https://www.skool.com/sme-education-9... Watch my previous recordinds on CS2 Time Series 👉    • Master Time Series Forecasting:Guide to AR...   CS2 Risk Modelling and Survival Analysis 👉   • Why One Random Variable Is Not Enough for ...   👉    • What is a Stochastic Process? Easy explana...   CS1 Previous recorded videos watch 👉    • What are discrete random variables? |Class...   CM1 Previous recorded videos watch 👉    • How to calculate simple interest | Fundame...   👉    • CM1 Y Part2 Class1- A beginner's introduct...   Time Stamps 00:00 Introduction to Unit Linked Profit Testing 01:10 Allocation structure and 60 percent vs 98 percent logic 02:30 Understanding minimum death benefit and 5000 guarantee 03:20 Bid offer spread explained conceptually 04:40 Full question assumptions explained 06:20 Start of Unit Fund Table construction 09:00 Growth and management charge mechanics 14:30 Death benefit logic and minimum guarantee 16:50 Single decrement vs multiple decrement clarification 18:20 Diagram explaining flow of funds 21:00 Non-unit fund income sources 24:00 Expense and negative first year interpretation 26:50 Interest calculation and accumulated balance 27:40 Extra death cost calculation 30:40 Year-wise profit calculation 31:30 Why reserve is not required here 32:50 When reserves become necessary 33:30 Detailed explanation of bid offer spread 38:30 Closing discussion and next session plan In this session, we solve a complete CM1A Unit Linked Profit Testing question from scratch and compare it with the traditional profit testing structure. You will clearly see how unit linked policies differ from non-unit traditional policies, especially in: • Allocation percentages in year 1 vs later years • Bid offer spread and how it affects cost of allocation • Management charges and where they flow • Unit fund vs Non-unit fund structure • Extra death cost and minimum sum assured • Expected profit on the non-unit fund • Why reserves are not required in this example • When zeroising negative cashflows becomes necessary We build both tables step by step: Unit fund table Premium allocation Bid offer spread Fund after allocation Investment growth Management charge deduction Death and survival benefits Non-unit fund table Unallocated premium Bid offer spread income Management charges received Expenses Extra death cost Interest on accumulated balance Final yearly profit You will also understand clearly: • Why first year allocation is only 60 percent • Why subsequent years are 98 percent • How 5 percent bid offer spread is treated • Why mortality M92 is used • Why this is a single decrement case • Why there is no withdrawal in this question • How extra death cost is calculated using expected values • Why reserve is not required when only first year is negative This is a base model question. Once this structure is clear, you can handle variations like: • Survival bonuses • Withdrawal options • Multiple decrement • Zeroising negative cashflows • Non-unit reserve calculations #CM1A #ProfitTesting #UnitLinkedPolicies #ActuarialScience #IFoA #InsuranceMathematics #ActuarialStudents #NonUnitFund #BidOfferSpread #ActuarialExamPreparation