The principles of setting reserves

Discussion in 'SP2' started by dChetty, Apr 1, 2016.

  1. dChetty

    dChetty Member

    Please explain this statement:The rate of interest used in the calculation of the reserves should be chosen prudently taking into account the currency in which the policy is denominated.
     
    dChetty, Apr 1, 2016
    #1
  2. Muppet

    Muppet Member

    interest rates are different in different countries/currencies. hence high in one country might low in another.

    HOWEVER, think this line is in the 2015 course? Reserving chapters different in 2016 and it's been taken out. Are you using last year's notes?
     
    Muppet, Apr 1, 2016
    #2
  3. dChetty

    dChetty Member

    I am using notes older than 2015 but I have updating it each time.
     
    dChetty, Apr 4, 2016
    #3
  4. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    Hi

    I've just double-checked & this sentence has definitely been removed for 2016. In general, the 2016 versions of the notes discuss a wider range of approaches to supervisory reserves, not necessarily always using prudent assumptions.

    Lynn
     
    Lynn Birchall, Apr 4, 2016
    #4
  5. dChetty

    dChetty Member

    Hi Lynn,

    Thanks for letting me know.
     
    dChetty, Apr 4, 2016
    #5

Share This Page