• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

April 2022 1(iii)

T

TanishaS

Active Member
Hi
In this answer why have we not considered the investment strategy of the company (where it could have invested in riskier assets or less matched position and would be required to hold more capital) or also it has to hold more capital as it may not have reinsurance or hedging in place?

Thanks
 
Have another look at exactly what the question is asking: 'Discuss why the company may hold more capital than that indicated by its assessment of its economic capital requirements'.
The points you raise above would be allowed for already within the economic capital requirement assessment. They don't explain why the company might hold more than that.
 
You must log in or register to reply here.
Back
Top