U
uktous
Member
hi,
I understand what is sum at risk and understand what is reserve.
However, I don't know how the sum at risk would relate the the reserve, apart from sum at risk = P(die) x (S - V).
Will the reserve in each year suppose to cover the sum at risk?
How the sum at risk relate to the reserve?
How the answer would be different between using net premium valuation and using gross premium valuation?
I understand what is sum at risk and understand what is reserve.
However, I don't know how the sum at risk would relate the the reserve, apart from sum at risk = P(die) x (S - V).
Will the reserve in each year suppose to cover the sum at risk?
How the sum at risk relate to the reserve?
How the answer would be different between using net premium valuation and using gross premium valuation?