Hi In Q-1iii) b) if the increase in maintenance expenses doesn't lead to an assumption change then the BEL would remain the same i:e no impact on BEL right? In Q-2 vii), didn't understand how the below mentioned points are valid here ,please explain. Maturity claims Even though these have increased to allow for the estate distribution ... ... the amounts remain lower than asset shares ... ... and lower than payouts on surrender Thanks
I have attempted to respond with what knowledge I have on this and as per my understanding. Anyone please correct me if required. In Q-1iii) b) if the increase in maintenance expenses doesn't lead to an assumption change then the BEL would remain the same i:e no impact on BEL right? Yes, BEL will only change if any of best estimate assumptions changes. In Q-2 vii), didn't understand how the below mentioned points are valid here ,please explain. Maturity claims Even though these have increased to allow for the estate distribution ... :From TCF perspective, it is in the interest of customer that some portion of estate is being distributed to them. WPA could like this from customer's view ... the amounts remain lower than asset shares ... :only 90% of AS is distributed, so 10% is not distributed. Even if 5% additional amount is paid from estate, still there is shortfall of 5% for which WPA can advocate for. ... and lower than payouts on surrender : WPA could be worried about the equity between different exits, ie maturing and surrendering customers. Thanks
