October 2015 2iii)

Discussion in 'SP8' started by km_18, Aug 11, 2018.

  1. km_18

    km_18 Member

    Could the assumption for calculating how many years to apply the inflation be as follows:

    Assume that the average start date for reinsurance contracts written on 1 January 2012 is halfway through the year i.e. 1 June 2012 so the inflation period would be from 1 June 2012 to 1 October 2015 which is 3 years and 5/12 months.
     
  2. Hemant Rupani

    Hemant Rupani Senior Member

    ILF table is for Reinsurance contracts written on 1st Jan 2012, regardless of mid-point of risk.
    Actuary wish ILF curve for Reinsurance contract that will commence on 1st Oct 2015, regardless of mid-point of risk.
    Now, if you assume mid-point of risk spread is after 5 months(1 Jan 2012 to 1 June 2012) from commencing, you should also assume mid-point of risk spread is after 5 months for the contract that will be written on 1 Oct 2015.

    just needs 1 assumption that - risk spread is the same for Reinsurance contracts wrote on 1st Jan 2012 and 1st October 2015, and theirs Reinsurance contracts risk also remain same.
     

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