Good evening, The answer to a part of question 11.5 refers to the Individual Capital Assessment (ICA) being "...expressed as a percentage of CRR, the Pillar 1 capital requirement." Please can you explain what the acronym CRR stands for, since I don't think it is mentioned in the notes. As a follow-on, would it be right to assume that CRR equals the sum of all the elements in the right hand part of Figure 1 illustration on page 13 (ch11)? In which case please could you also clarify what is meant by the item "Regulatory Surplus" in that figure, since there doesn't appear to be any mention of that term either in the notes. Thanks, Richard.
Hi Richard100 The CRR has been deleted from the SA1 Core Reading, and we should have deleted this reference too (I've made a note to make sure we do this for next year). CRR stands for Capital Resource Requirements. For most insurers that would write health care business this would be equal to the MCR (minimum capital requirement) which is why it has been removed this year. This means it will just be the sum of the LTICR and RCR in the diagram you mention (provided this is greater than the BCRR). Hope this helps Sarah
