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Sum At Risk

L

LastMile

Member
SAR = Sum Assured - Reserve

My question is that should SAR be calculated using original sum assured OR sum insured inforce?
The reserve is held for inforce policies hence the SAR must be calculated using sum insured inforce.

Thanks heaps in advance for your help!
 
Yes that's right. We are working out the profit for a particular year so it directly relates to the policies we have in force during the year. The sum insured that is used must be the sum that would be paid on death during that year for every policy that was in force at the start of the year.
Robert
 
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