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Thank you Em!
Hello, Can I double check my understanding of one aspect of reserving for conventional with-profits contracts? I understand from course material...
Thank you Mark for your answer. So it's more about active vs passive valuation - if we tried to use the net premium but calculated under the...
Hello, I have a pretty basic question about the net premium reserves. I've always understood that each time reserving basis is changed, the net...
Ok, having thought about this a bit more, could it be because: 1) netting down expenses has actually to do with a tax relief a company can achieve...
Hello, I'm wondering why for business on an 'I-E' basis it is fine to do the following when projecting the SII BEL cashflows: a) project...
Hi, to unlock the CSM means that it is adjusted to absorb changes in the fulfilment cash flows - this prevents those changes from being recognized...
Hi, 1. assumptions about the reference undertaking in EIOPA's rulebook: https://www.eiopa.europa.eu/rulebook/solvency-ii/article-6376_en 2....
Hi, this is how I tend to think about it, yes, but let's wait for an ActEd tutor to confirm this understanding. In practice the calculation is...
Hi, by a "third party" I mean a potential entity assuming liabilities of another insurer in a transaction. Say we valued some liabilities at...
The purpose of risk margin is to bring the liabilities calculated using best estimate assumptions for non-hedgeable risks up to a market value. In...
Hi Arush, see some initial answers below. 1. One example to think of - a single-premium investment policy. Your total BEL could be thought of as...
Hi Duc, The definition of 'profits' in such a context would normally include change in reserves. Prof(t) = P(t) + I(t) - C(t) - E(t) - dR(t),...
Thank you Mark, these are all very helpful insights! My last question in this thread would be the following. Market consistent value of insurance...
Thank you Mark for excellent responses and mugono for your contributions! Very helpful indeed. In theory, I imagine one could come up with...
Market consistent valuation of SII technical provisions is sometimes explained with references to results of the theory of options/derivatives...
In the Standard Formula you need to calculate the 0.995-th quantile for each risk/sub-risk, and aggregate them with correlation matrix to get the...
For a General Model (GM), a simplified roll-forward of the CSM for a sample group of contracts would like the following: CSM(T+1) = CSM(T) (+)...
Under IFRS 17, the total liability can be split per Liability for remaining coverage (BEL+RA+CSM) and Liability for incurred claims. So yes, the...
I think Uros made a valid point about life contracts with multiple coverages. Under SII, for a policy with protection riders you'd assess contract...
If so, then I'm confused why we need to distinguish between: a) fulfilment cash flows which do not vary with the underlying items and are part...
A follow-up question - speaking of a standard UL policy, do cash flows not payable to the policyholder but normally included in the non-unit BEL...
Hi, I'd say that "illiquidity premium" is a general term, while the matching adjustment is what this concept is called under SII. So these are...
In a 100:0 UWP fund investment surplus is 100% attributable to policyholders and shareholders receive only explicit charges deducted from the...
