Assignment X 3.7

Discussion in 'SP7' started by Minh Ho, Mar 28, 2024.

  1. Minh Ho

    Minh Ho Very Active Member

    In the answer 3.7ii says an advantage of using the formula is: Arguably, the fact that there is no scope for judgement is also desirable
    Could you please enlighten me in the context of Comment on the advantages and disadvantages of this formula as a statutory valuation basis. Suggest whether or not the proposal should be supported by the insurance industry.
    The formula is LR * UP - UPR
     
  2. Darren Michaels

    Darren Michaels ActEd Tutor Staff Member

    This may make it easier for the regulator, eg to compare amounts between different insurers.
     

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