S
Sam_actuary_123
Member
One of the disadvantages for allowing for ENIDs is that 'adding additional reserves increases costs for the insurance market'.
I thought this would be because there is additional capital strain to holding these reserves however one of the points in the report is:
'unlikely to cause capital strain since probability weighted'.
So how would adding these additional reserves add costs for the insurance market?
Thanks
I thought this would be because there is additional capital strain to holding these reserves however one of the points in the report is:
'unlikely to cause capital strain since probability weighted'.
So how would adding these additional reserves add costs for the insurance market?
Thanks