SOA GIFREUGeneral Insurance — Financial & Regulatory Environment (U.S.)

Fellowship (FSA)

4 hours·10–12 written-answer questions·≈350 study hours

Syllabus learning objectives

Paraphrased from the SOA syllabus so the study-plan builder and practice sets track the topics you will actually be examined on. Weights are the official topic ranges.

Statutory accounting & Annual Statement

35%

Describe the structure and key exhibits/schedules of the NAIC Annual Statement, including Schedule P.
Distinguish statutory accounting principles from GAAP for general insurance liabilities and reserves.
Compute key statutory reserve and surplus items, including unearned premium and loss reserves.
Interpret the annual statement actuarial opinion and its supporting exhibits.

Regulation, solvency & RBC

30%

Describe the U.S. state-based insurance regulatory framework and solvency monitoring tools.
Compute Risk-Based Capital (RBC) charges for underwriting, credit, and other risk categories.
Assess the regulatory action levels triggered by RBC ratio thresholds.
Compare U.S. RBC with other international solvency regimes at a conceptual level.

Actuarial opinion, reinsurance accounting & risk transfer

35%

Describe the requirements and components of the Statement of Actuarial Opinion on loss reserves.
Apply the risk-transfer testing criteria to determine appropriate reinsurance accounting treatment.
Distinguish retroactive from prospective reinsurance accounting.
Identify disclosures required for reinsurance recoverables and related uncertainty.

Overview

GIFREU parallels CAS Exam 6-US: statutory accounting, the Annual Statement and Schedule P, solvency regulation and RBC, reinsurance accounting including risk-transfer testing, and the Statement of Actuarial Opinion.

Duration: 4 hours
Questions: 10–12 written-answer questions
Style: Computer-based written answer
Credit: GI track FSA requirement

Syllabus map

Statutory accounting & Annual Statement

35%

P&C Financial Reporting and Schedule P

Regulation, solvency & RBC

30%

P&C Financial Reporting and Schedule P

Actuarial opinion, reinsurance accounting & risk transfer

35%

Reserve Adequacy and ASOP 43 Reinsurance Structures and Pricing

Key formulas

Expected reinsurer deficit $\;ERD=\dfrac{E[\text{PV reinsurer loss}\mid\text{loss}]\cdot P(\text{loss})}{\text{PV premium}}$ ; common threshold 1%.

10-10 rule: at least 10% chance of a 10% PV loss to the reinsurer.

Premium deficiency reserve, RBC action levels, IRIS 11–13: see CAS 6-US guide.

Study strategy

Outline every reading into numbered lists.
Practice Schedule P derivations and risk-transfer test computations.

Common traps

Confusing prospective and retroactive reinsurance accounting (deposit accounting for retroactive contracts lacking risk transfer).
Forgetting that RBC uses Total Adjusted Capital, not raw surplus.

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