A
Adithyan
Member
The resultant insurance
capital (based on undiscounted reserves) could therefore be too high and the free
capital too low. When the excess reserves are released, the profits declared will
be greater (at this point) than if discounted reserves had been held. As discussed
in Section 2.2, we should deduct any such baseline profit from the capital
requirement as a separate item.
I want to know if insurance capital and reserve or technical provisions are the same.
If my reserves are high will my capital be high?
capital (based on undiscounted reserves) could therefore be too high and the free
capital too low. When the excess reserves are released, the profits declared will
be greater (at this point) than if discounted reserves had been held. As discussed
in Section 2.2, we should deduct any such baseline profit from the capital
requirement as a separate item.
I want to know if insurance capital and reserve or technical provisions are the same.
If my reserves are high will my capital be high?