1. 

   Actuary@22 Very Active Member

   Hi
   Could you please explain what exactly is meant by Reinsurance Credit risk and Residual market risk in the risk margin concept -sec 2.2? -pg11

    

   Actuary@22, Sep 11, 2023

   #1
2. 

   Lindsay Smitherman ActEd Tutor Staff Member

   Reinsurance credit risk = risk of reinsurer default
   Residual market risk = any market risk that would not be considered to be 'hedgeable' (remembering that the risk margin only covers non-hedgeable risks) - the course notes give an example of such a risk in that section

    

   Lindsay Smitherman, Sep 11, 2023

   #2

   Actuary@22 likes this.

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