Hi In this answer why have we not considered the investment strategy of the company (where it could have invested in riskier assets or less matched position and would be required to hold more capital) or also it has to hold more capital as it may not have reinsurance or hedging in place? Thanks
Have another look at exactly what the question is asking: 'Discuss why the company may hold more capital than that indicated by its assessment of its economic capital requirements'. The points you raise above would be allowed for already within the economic capital requirement assessment. They don't explain why the company might hold more than that.
