bel

Hello, I'm studying Solvency 2 and I know that the BEL is discounted by the curve with VA (Volatility Adjustment) I would like to know if the Directive require the BOTH the projection of assets and the discounting with the curve with VA, or only the discounting the the curve VA ? And if the...

Hello - Could you please help me with below queries: Chapter 11 (Que 11.6 - Best estimate liability determination for unit linked contract - under SII) The solution says that non-unit related liabilities are calculated by discounting the projected non-unit cashflows. I understand that To...

Hi, Ref: CMP, Ch12, p.6 Is the contract boundary only to the point at which the insurance company can terminate/change the premium? I thought it was until any point at which the contact can be terminated, including policyholder actions?

I'm hoping to check my understanding of this and to fill in a few gaps: Total BEL = PV (Benefits + Expenses - Premiums) Benefits These include both those guaranteed to date and future discretionary benefits. This is calculated as: max(smoothed AS, guaranteed benefits at time of claim) =...

Hi Lindsay I'm trying to understand the reason why widening spreads is listed as a risk in the examiner's report. Isn't it only a risk if the company doesn't intend to hold the bonds to maturity? I would assume that the company does intend to do so if it's assets and liabilities are...

I'm a little confused by the BEL for the savings element of the UL contract versus the GAO. In particular: The BEL for the unit fund projects fund values using risk free rates as the investment return assumption (as is required by a MC approach) However, for the BEL for GAO, this fund value is...

One of the contract boundaries is "the point at which premiums/benefits can be changed in such a way that they fully reflect the risks". Do reviewable premiums fall into this category? And if not, what type of situations does this apply to?

Chapter 23 mentions that one of the key parts of managing market risk is management's understanding of the sensitivity of the liability calculations to movements in market values. Given that the BEL is discounted using published risk-free rates (and no longer using actual expected investment...

I'm struggling to understand how the technical provisions for with-profits policies are calculated. The BEL for a with-profits product allows for both guaranteed (ie. including bonuses declared to date) and discretionary benefits (ie. future reversionary and terminal bonuses), where the BEL is...