Hi, in page 8 of chapter 10 , it mentioned about the RITC: it suggested that if reinsuring lloyd's member unable to meet their liability , then the burden fall upon lloyd's central fund . -- it is making sense , but the next sentence is confusing , "only if the central fund were exhausted , then lloyd's member for the ceding year be required to meet this obligation" example : if YoA 2019 RITC to YoA2020 at the end of 2021, if yoa 2020 unable to meet the liability , then fall to Lloyd's central fund . but if central fund is also not enough , then members participant YOA 2019 need to meet the obligation ? isnt that the whole purpose of RITC is to clear and discharge YoA2019 members from liabilities? thank you a lot for your time
Have a look at paragraph 2.3.19 of the following paper on RITC. https://www.actuaries.org.uk/system/files/documents/pdf/sm20000327.pdf
