Financial service

Topics: Financial services, Insurance, Investment Pages: 53 (11243 words) Published: October 23, 2013

Subject CT9: Business awareness Online Course

Pre-course assignment of 7 exercises

There are seven exercises within this workbook which you must complete. You must also complete the declaration on Page 1 of this assignment and then upload the workbook at IAI website under your member login

You need to submit the completed assignment by 17th May 2013 under your IAI Member login.

Any assignment which is not submitted will not be eligible for the exam and you will have to apply to take the exam again. You may commence your work on these exercises at any time before the start of, or during, the 10 day business game period.



Pleasereadtheinstructionsbelowandsignthedeclarationbeforesub- mittingthecompletedworkbook.

1. ThisworkbookisintendedtoprovidepreparatorymaterialfortheCT9 Online course 2. Youareexpectedtocompleteallsectionsofthisworkbookpriortoappe- aring the online examination
3.Pleaseensurethatthecompletedworkbookisuploaded on IAI website under your member login by17th May 2013 4. Ensurethatyoucompletethisworkbookinallearnest–youranswerswillbereviewedtoensurethatareasonablestandardhasb- eenachieved.Thisisapre-requisiteforappearing the online examination. 5. Youwillbegivenfeedbackonthequalityofyourworkpriortotheexam. 6. YouarepromptedtoadheretotheActuarialCodeofConductwhileattemp- tingthisworkbookandthereafter.Itiscriticalthatallworkthatyousubmitisyourown.Plagiarismofanykindwillbetreatedseriouslyandconsideredabreac- hofexaminationregulations

7. Youmustsignthedeclarationbelowstatingthatthisisyourownwork.


IdeclarethatallmaterialIhavepresentedinthisworkbookismyownwo- rkandthatIunderstandanydeliberateactsofplagiarismaredeemedto- beinbreachofexaminationregulations.


Exercise 1

Financial Services Companies

Having studied the tutorials on the I-coach website, and identified some relevant news items in your own country’s newspapers or magazines.

How do financial services companies create value for customers – that is, what underlying needs are they satisfying? Think about:

The need for security…iefinancial protection against death, loss, illness, theft which is provided by life or general insurance companies. The need to fulfil desires…ieto meet future financial requirements either on retirement, loans for home, car, etc., The need to meet responsibilities…finances for child higher education/marriages by investing in savings plans, mutual fund or unit linked products or finances or health insurance policies for family member or savings for any unknown purpose

Other…For immediate spending companies provide credit cards/ debit cards for convenience so that there is no need to carry large amounts of money physically

Why does anyone place their funds in the hands of financial services companies?

In order to manage their funds investors place their funds in hands of financial service companies.

This helps them to earn higher return as companies invests pooled funds in large amounts.

Also these companies have specialist fund managers who can strategically earn higher returns and help the customer to mitigate the risk of investmemnt.

What sources of advantages can financial services companies use to create value for customers? Financial service companies would like to go for gaining sustainable competitive advantage over others via different methods

e.g. Superior assets such as making use of scarce resources and patterns, good location, superior distribution and sales of a recognized brand.

Strategic relationships such as…building better customer relationships via better communication support. Distinctive capabilities such as… Steps that help to innovate and manage information via converting information into opportunities and sustain privileged assets by offering...
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