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The document sets study tasks to build a modelling framework from scratch, follow an existing audit trail, and extend an Excel simulation. It specifies distribution calculations with £500,000 step size, reinsurance payout comparisons under current vs alternative retention/upper-limit terms, probability of reinsurance recovery, and charting plus a concise 5–7 page project summary. Context describes TQIC’s portfolio, hurricane-related property claims, and a decision between two reinsurance structures.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/specimen-examination-subject-cp2-paper-two-actuarial-modelling-instructions-and-requirements/398997/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/specimen-examination-subject-cp2-paper-two-actuarial-modelling-instructions-and-requirements/398997.png","ImageObject",300,407,{"name":92,"@type":93},"Guten tag","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-28","2026-09-27",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",11,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What model-building instruction is given to the candidate?","Question",{"text":113,"@type":114},"Build the model from the beginning and do not use an imported e-template. Ensure the output includes self-checks for the additional spreadsheet work.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"Which additional calculations are required under the current and alternative reinsurance?",{"text":118,"@type":114},"Determine a frequency distribution of simulated aggregate gross claim amounts using a £500,000 step size, compute insurer and reinsurer payments for each simulation, and obtain required summary statistics plus the probability of receiving any reinsurance recovery for both arrangements.",{"name":120,"@type":111,"acceptedAnswer":121},"What should the final summary document include and who is it for?",{"text":122,"@type":114},"Prepare a 5–7 page summary covering project purpose, data, method and assumptions, results including charts, commentary with key conclusions and next steps, and it should be prepared for a boss who will present the work to the Chief Executive Officer.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},398997,1790528089,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":105,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},687212321768,"https://ap-avatar.wpscdn.com/avatar/a0010bdbe886d2fe77?x-image-process=image/resize,m_fixed,w_180,h_180&k=1789897067658708522","INSTITUTE AND FACULTY OF ACTUARIES  \nCurriculum 2019  \nSPECIMEN EXAMINATION  \nSubject CP2 – Actuarial Modelling  \nPaper Two  \nTime allowed: Three hours and fifteen minutes  \nINSTRUCTIONS TO THE CANDIDATE  \n1. You must build your model from the beginning and not use an imported e-template.  \nYour file names must include your ARN, the name of the document and the paper sat (e.g. 9000000-SummaryPaper1) and each file should contain your ARN as a header or footer.  \nPlease note that the content of this booklet is confidential and students are not to discuss or reveal the contents under any circumstances nor are they to be used in a further attempt at the exam.  \nIf you encounter any issues during the examination please contact the Online Education team [at](at online_exams@actuaries.org.uk T. 0044)[ ](at online_exams@actuaries.org.uk T. 0044)[online_exams@actuaries.org.uk](at online_exams@actuaries.org.uk T. 0044)[ T. 0044](at online_exams@actuaries.org.uk T. 0044) (0) 1865 268 255  \nThis page has been left blank.  \nExam requirements  \n1. Read the background document, which describes the scenarios that have been modelled and documented for this project and the work which remains outstanding. Technical assistance for the modelling work, should you require it, can be found in the additional guidance contained in this booklet.  \nNo marks will be deducted for the use of this guidance.  \n2. Read the audit trail which has been written by your colleague, another actuarial student, for the calculations that they performed. This will assist you in following and understanding the calculations performed in the Excel model provided.  \nYou are not required to add to or amend the audit trail.  \n3. Build on the model provided to produce the following additional calculations. You should ensure that the additional spreadsheet work which you perform contains appropriate self-checks.  \n(i) Determine the frequency distribution of the simulated aggregate gross (i.e. before reinsurance) claim amounts using a step size of £500,000 (i.e. the number of aggregate claim amounts falling within each £500,000 band) . [3]  \n(ii) Calculate the amounts that would be paid by the insurance company and the amounts that would be paid from the reinsurer under the alternative reinsurance, for each simulation. [3]  \n(iii) Calculate the following for both the current and alternative reinsurance:  \n(a) the required summary statistics  \n(b) the probability of receiving any reinsurance recovery [3]  \nYou should assume that your colleague’s calculations have been checked and are correct.  \n4. Illustrate in your model the following using two suitable charts:  \n􀁸 the distribution of simulated aggregate claim amounts, as determined in 3(i)  \n􀁸 a comparison of the four summary statistics for the current and alternative reinsurance arrangements, as determined in 3(iii)(a)  \n[6]  \n[Sub-total 15]  \n5. Prepare a summary document of around five to seven pages, capturing the main features and results of the work done by you and your colleague. You can assume that the summary is being prepared for your boss, a senior actuary, who will present the work to the Chief Executive Officer.  \nYour summary should include the following:  \n􀁸 purpose of the project, data, method and assumptions used by you and your colleague  \n􀁸 results, including charts  \n􀁸 commentary on the results, key conclusions and suggested next steps  \nThe summary should cover the full scope of the project, including the modelling already done by your colleague in the spreadsheet provided.  \nYou are not required to add to or amend the audit trail.  \nMarks available for the summary:  \nMethodology (including purpose, data, method and assumptions): [20] Results, including charts [5]  \nCommentary on results and conclusions [25]  \nNext steps [25]  \nDrafting [10]  \n[Sub-total 85]  \n[Total 100]  \nBackground  \nIn the country of Actuaria, the TransQuick Insurance Company (TQIC) insures a large proportion of the country’s transportat","cbCaioAdVueRfdfi","https://ap.wps.com/l/cbCaioAdVueRfdfi","pdf",468785,"English","# Exam requirements\n## Build and extend the model\n## Calculate frequency distributions and reinsurance payouts\n## Summary statistics and probability of recovery\n## Required charts\n## Prepare the 5–7 page summary\n# Background\n## TQIC portfolio and hurricane claims\n## Current vs alternative reinsurance arrangements","[{\"question\":\"What model-building instruction is given to the candidate?\",\"answer\":\"Build the model from the beginning and do not use an imported e-template. Ensure the output includes self-checks for the additional spreadsheet work.\"},{\"question\":\"Which additional calculations are required under the current and alternative reinsurance?\",\"answer\":\"Determine a frequency distribution of simulated aggregate gross claim amounts using a £500,000 step size, compute insurer and reinsurer payments for each simulation, and obtain required summary statistics plus the probability of receiving any reinsurance recovery for both arrangements.\"},{\"question\":\"What should the final summary document include and who is it for?\",\"answer\":\"Prepare a 5–7 page summary covering project purpose, data, method and assumptions, results including charts, commentary with key conclusions and next steps, and it should be prepared for a boss who will present the work to the Chief Executive Officer.\"}]","SPECIMEN EXAMINATION - Subject CP2 - Paper Two - Actuarial Modelling - Instructions and Requirements | PDF",1790490964,28]