• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Pillar 1 acronyms (ch 11 - Legislation (1)

R

Richard100

Member
Good evening,

The answer to a part of question 11.5 refers to the Individual Capital Assessment (ICA) being "...expressed as a percentage of CRR, the Pillar 1 capital requirement."

Please can you explain what the acronym CRR stands for, since I don't think it is mentioned in the notes.

As a follow-on, would it be right to assume that CRR equals the sum of all the elements in the right hand part of Figure 1 illustration on page 13 (ch11)? In which case please could you also clarify what is meant by the item "Regulatory Surplus" in that figure, since there doesn't appear to be any mention of that term either in the notes.

Thanks,

Richard. :)
 
Hi Richard100

The CRR has been deleted from the SA1 Core Reading, and we should have deleted this reference too (I've made a note to make sure we do this for next year).

CRR stands for Capital Resource Requirements. For most insurers that would write health care business this would be equal to the MCR (minimum capital requirement) which is why it has been removed this year. This means it will just be the sum of the LTICR and RCR in the diagram you mention (provided this is greater than the BCRR).

Hope this helps :)

Sarah
 
You must log in or register to reply here.
Back
Top