S
Steve Parry
Member
Having a bit of difficulty trying to understand how these are different (if at all). From my understanding:
Solvency II
Thanks in advance.
Solvency II
- The contract boundary is defined as the point when the company can terminate the contract, refuse premium, stop paying claims, or change the premium so it fully reflects this risk i.e. at renewal or MTA stage.
- If there are contractual obligations to renew the policy, this must be included within the boundary. However, this should be excluded if, in the case of motor insurance, the policy has auto-renewal but the policyholder changes provider.
- The contract boundary is defined as the point when the company can change the premium to fully reflect the risk (as per Solvency II); or
- As per the core reading, the premiums for coverage up to date when the risks are assessed does not take into account the risks that relate to periods after the assessment date.
Thanks in advance.