J
JeanOlivier
Member
Hi,
The solution mentions about assessment of diversification bet classes.I thought that this applied to capital modelling only.Do insurers make allowance for diversification when calculating reserves using stochastic modelling or is the sol poorly worded?
Also, the capital requirements referred to further down in same sol, is it excess of assets over liabilities or overall capital requirements?
Thanks for helping me out..
The solution mentions about assessment of diversification bet classes.I thought that this applied to capital modelling only.Do insurers make allowance for diversification when calculating reserves using stochastic modelling or is the sol poorly worded?
Also, the capital requirements referred to further down in same sol, is it excess of assets over liabilities or overall capital requirements?
Thanks for helping me out..