Q&a 6.4

Discussion in 'SA3' started by marymaj86, Apr 3, 2011.

  1. marymaj86

    marymaj86 Member

    Hello

    I am a little confused by part of the solution to this question (on page 16 of the Part 6 solutions). It says that "the FSA uses a break up approach in assessing insurance companies' solvency".

    I thought, however, that the FSA Returns (including the MCR, etc.) were compiled on a run-off basis. Where does the wind-up / break-up basis come in, in that case?

    Thanks
     
  2. Ian Senator

    Ian Senator ActEd Tutor Staff Member

    Oops! Sorry, well spotted, it should say run-off. I'll get it changed.
     

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