J
Jerris
Member
There are some parts of the answer that I do not quite understand
"No non CAT XoL so no issues with use of standardised rather than internal
CAT specific cover in place however and risk mitigating benefits are unlikely
to be reflected well in the CAT module due to highly bespoke nature
...
For the Motor lines of business the requirement to split the exposures into
property damage and third party liability is not something the company would have done as part of their processes previously and as such they would not have historical data available.
Given the company writes Workers Compensation we would have expected a
Health Risk Charge, although they could be assuming this is covered in the
casualty line."
1) What does Cat and Non Cat XoL have to do with making the standardised model less suitable?
2) What is the phrase "Cat Module" referring to?
3) Is the splitting of Motor Lines of business is required by the Standard Formula to determine Premium and Reserve Risk?
4) When the answer says that the health risk charge could be covered in the casualty line, is it the same as saying that the health risk charge might be already included within the "Premium & Reserves" risk capital charge of 199.4m GBP (given in the question)?
"No non CAT XoL so no issues with use of standardised rather than internal
CAT specific cover in place however and risk mitigating benefits are unlikely
to be reflected well in the CAT module due to highly bespoke nature
...
For the Motor lines of business the requirement to split the exposures into
property damage and third party liability is not something the company would have done as part of their processes previously and as such they would not have historical data available.
Given the company writes Workers Compensation we would have expected a
Health Risk Charge, although they could be assuming this is covered in the
casualty line."
1) What does Cat and Non Cat XoL have to do with making the standardised model less suitable?
2) What is the phrase "Cat Module" referring to?
3) Is the splitting of Motor Lines of business is required by the Standard Formula to determine Premium and Reserve Risk?
4) When the answer says that the health risk charge could be covered in the casualty line, is it the same as saying that the health risk charge might be already included within the "Premium & Reserves" risk capital charge of 199.4m GBP (given in the question)?