Standard formula with undertaking specific parameters (USPs)

Discussion in 'SA2' started by Himanshu Sikri, Mar 18, 2022.

  1. Himanshu Sikri

    Himanshu Sikri Keen member

    Hi,

    This is from Solvency assessment (2) core reading.
    Can any one help me understand what paramter it is refering to with some example is possible?

    Thanks.
     
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    USPs replace the parameters used in the Standard Formulae risk modules so that they are specific to the company. For example, the standard deviation or growth rates for annuities used within the risk modules are calibrated on the basis of the internal data of the insurer.
    Hope this helps.

    Thanks
    Em
     

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