How would I calculate the TIR in the event that I am not given any of 3 terms:
- Revenue from PAA Contracts
- Revenue from GMM Contracts (excluding VFA contracts)
- Revenue from VFA Contracts
Thank you
Hello @cashcrazy:
fyi.. Our staff is monitoring the forum less often during the Holidays but your question will be answered in the next few days.
Usually TIR would just be earned premium + Service fees (Usually not in the exam). I don’t think it is usual for them to split it out by sub categories from the P&C 1 in the actual exam.
Thank you for your reply.
Where were you able to find that TIR is earned premium + service fees? I’m trying to look through the source material, but cannot find it.
Also, is TIR the same as insurance revenue?
Lastly, regarding the excel files, are there any examples of files that are filled out with numbers/formulas in each of page tabs (rather than just blank files that the source provides)? This would be really helpful to understand the different pages and how they interact with one another. Thank you!
Unfortunately, as far as I can tell, the example exhibits provided as part of the Exam 6-Canada content do not display any numbers. (You’re absolutely right that having numbers would make the relationships between the different line items easier to understand.)
Regarding your other questions, our staff will handle those.
It is on page 25 of the LRC paper. Service fees is not mentioned there but this is also a component of the TIR. TIR stands for total insurance revenue, so yes. For filled up pages of the P&C return, your best bet would be to reach out to your finance or corporate actuarial team to get your own company’s filled in return.
thank you! when we say service fee, what would an example of this be? also, is service fee usually a negative amount that decreases TIR?
I think the easiest one to remember for me is investment fees if you have some form of investment linked product, usually on the life side. It is a positive amount and increases the TIR