In Sep 2018 Q1 (i), for the impact of Equity risk and credit spread widening on SCR, both asset and liablities are being conidered. However, in April 2019 Q1 (iii) in required capital, only Assets are being considered even though products are very similar unit linked and matching adjustment allowed for annuities (for 2019, i have assumed annuities as matching is allowed) Could you please clarify why the approach varies under two papers.
Sept 2018 Q1(i) requires us to 'discuss the factors that contribute to each of the ...' so our answer needs to be clear on what those contributory factors are that have resulted in the figures provided. April 2019 Q1(iii) is only asking for the impact on the listed components (of which there are several to cover for not many marks) and so the solutions are giving a higher level answer. For example, for the equity stress in (a), the required capital part of the solution doesn't explicitly mention that the impact on the unit part of the BEL will precisely offset the impact on the assets backing that and so can be disregarded - although the BEL is mentioned elsewhere in the answer to (a).
