Hello,
In April 2020 attempt, answer to Q2 iv) talks about stresses in internal model. My question is- how do we calculate internal model in reality? Standard formula is very clear as unstressed-stressed net assets but I did not think of the same definition for internal model as its definitely not explicitly mentioned in Core Reading. I dont have practical experience on Solvency II. Please help.
Thank you!
In April 2020 attempt, answer to Q2 iv) talks about stresses in internal model. My question is- how do we calculate internal model in reality? Standard formula is very clear as unstressed-stressed net assets but I did not think of the same definition for internal model as its definitely not explicitly mentioned in Core Reading. I dont have practical experience on Solvency II. Please help.
Thank you!