Hi,
For the answers to Question 5(ii), seems like the question is seeking for issues in designing the protection scheme to protect policyholders of insolvent insurers, but seems like the answers are mainly focusing on how to avoid the risks (such as terminating term assurance contracts and not honoring the guarantees) instead of taking on the contracts and managing the risks on them. Would like to seek for some explanation on the thought process to answering this question if possible.
Thank you!
For the answers to Question 5(ii), seems like the question is seeking for issues in designing the protection scheme to protect policyholders of insolvent insurers, but seems like the answers are mainly focusing on how to avoid the risks (such as terminating term assurance contracts and not honoring the guarantees) instead of taking on the contracts and managing the risks on them. Would like to seek for some explanation on the thought process to answering this question if possible.
Thank you!