B
Benjamin
Member
Hi,
Ref: CMP, Ch20, p.10 (Question 10.6)
A couple of questions about the solution to this question:
- First paragraph: Isn't the cost of cover the excess of guaranteed claim amounts over asset shares, not just total claims payments?
- Could you elaborate on the second paragraph please? This seems a cumbersome way to do this but more importantly, when it says "calculate the cost of cover using these smooth rates", could you describe this process please?
Ref: CMP, Ch20, p.10 (Question 10.6)
A couple of questions about the solution to this question:
- First paragraph: Isn't the cost of cover the excess of guaranteed claim amounts over asset shares, not just total claims payments?
- Could you elaborate on the second paragraph please? This seems a cumbersome way to do this but more importantly, when it says "calculate the cost of cover using these smooth rates", could you describe this process please?