Hi there,
I'm a bit confused with some of the terminology in the notes. When assessing capital requirements, is the max capital requirement the sum of the two
For example, let's take insurance risk and assume it's only made up of u/w and reserving risk
res risk 405
u/w risk 120
If the sum of the two (525) the capital requirement if they are perfectly correlated or if they are independent?
Thanks in advance