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Date: $1^{ST}$ July $2024$

Assignment One

Due: ${15}^{th}$ JULY $2024$

Question

$[$Total Marks $=20$ Marks$]$

$($i$)$ Everything Life has engaged you as an actuarial consultant for the design of a range of life and health insurance products aimed at meeting policyholder needs. A packaged product proposed for launch in the Zambia market consist of the following four sub$-$products.

Funeral Cash $-$ paid out as Funeral Cash

Groceries Cash $-$ for the purchase of groceries paid to bereaved family for $1$ year

School Fees Cash $-$ school fees paid directly to the school for your child$($ren$)$ aged below $25$ years

Hospital Cash $-$ paid from the third night spent in hospital.

$($a$)$ For each of the features of the above sub$-$products, identify its class and outline the needs that it is intended to meet under the scope of life and health insurance.

$[6$ marks$]$

$($b$)$ Based on your knowledge of similar products on the Zambia market, come up with benefit specifications for any two of the above products. Specify the premium payment tenure.

$[4$ marks$]$

$($c$)$ Explain the impact of the mortality and interest rates on any two above products $[$different from those chosen in $($b$)]$ in Zambia.

$[4$ marks$]$

$($d$)$ Assess the various risks faced by Everything life in providing the above benefits in the Zambia context.

$[6$ marks$]$