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part 6 q&a - question 6.6

Discussion in 'SP9' started by Viki2010, Feb 9, 2018.

  1. Viki2010

    Viki2010 Member

    This question asks for applications of internal capital model.
    The solution gives a couple of bullet points about the reserving i.e. meet statutory reserving requirements and modelling cashflow requirements - assessing the volatility of reserves....

    I am a bit confused here as my understanding of the internal model is that it uses an input from the liability cashflow models i.e. BEL - reserves. Therefore the liability models are used for reserving purposes stated above and an internal capital model is not used for these sort of purposes.

    Can you please clarify?
     
    Viki2010, Feb 9, 2018
    #1
  2. Viki2010

    Viki2010 Member

    Hi, I bump up the question.
     
    Viki2010, Feb 27, 2018
    #2

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