Hi, Just wanted a clarity on pricing vs reserving assumptions. What I know is generally - Pricing is done on prudent assumptions (or we can use best estimate assumptions with additional profit loading) and Reserving is done on regulatory defined set of assumptions (which can be prudent with a low capital requirement or can be best estimates with high capital requirements). Please let me know if my understanding is correct or not. Please add your view points as well on the same.
Hi Naman Yes, that is exactly right. Typically pricing assumptions have less prudence than reserving assumptions. Best wishes Mark
