P
PrakashD
Member
In section 9.2 "Reserving for PPO" , It is mentioned that extra amount to be reserved is called uplift for claims that will be settled as PPO instead of lumpsum. It further says that, it is possible for the uplift to be negative if the insurer uses a lower discount rate than that used to convert to lump sums.
If lower discount rate is used then the PPO present value will be relatively more, so how uplift can be negative.
If lower discount rate is used then the PPO present value will be relatively more, so how uplift can be negative.