Apr 2021 Q3 vii)

Discussion in 'SA2' started by Actuary@22, Apr 12, 2024.

  1. Actuary@22

    Actuary@22 Very Active Member

    Hi
    Could u pls explain what will be the unit growth rate assumption and the discount rate assumptions under the Prudential statutory reserves approach and why?

    examiners report mentions that discount rate is likely to be risk free in both cases,not clear on why that maybe the case as one is a best estimate and other a prudential approach.
     
  2. Lindsay Smitherman

    Lindsay Smitherman ActEd Tutor Staff Member

    This point is explained in our ASET for that paper, so would recommend that you review the explanation there.
     

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