C
curiousactuary
Member
How does traditional reinsurance reduce required capital? This is mentioned under section 6 of chapter 14 (capital management).
I consider required capital to be the SCR and MCR.
I thought that traditional reinsurance increases assets and hence available capital under Solvency II where reinsurance recoveries are treated as assets.
I fail to see how they reduce the required capital.
I consider required capital to be the SCR and MCR.
I thought that traditional reinsurance increases assets and hence available capital under Solvency II where reinsurance recoveries are treated as assets.
I fail to see how they reduce the required capital.