Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > General Actuarial
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions



General Actuarial Non-Specific Actuarial Topics - Before posting a thread, please browse over our other sections to see if there is a better fit, such as Careers - Employment, Actuarial Science Universities Forum or any of our other 100+ forums.

Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 04-25-2020, 01:15 AM
Atomizer's Avatar
Atomizer Atomizer is offline
 
Join Date: May 2015
Studying for ST7
Posts: 18
Default Principle of Correspondence for reinsurance arrangements in Solvency II

I was reading this IFoA working party paper today -
https://www.actuaries.org.uk/system/...per-giro40.pdf

In section 4.3 the authors explain the principle of correspondence for legally obliged contracts along with 2 examples for 4.3.1 and 4.3.2 where they discuss how the reinsurance contracts are dealt on a LOD and RAD basis.

I understood the part that the legally obliged "existing" reinsurance contracts must correspond to the primary policies that exist. However, I do see they are suggesting a proportion relating to the cover on the reinsurance contracts that strictly doesn't yet fall within the contract boundary.

This part is not very clear to me. How do they determine which proportion of unincepted contracts cover that has not yet strictly exist within the contract boundary to be included for the calculation of solvency II Technical Provisions?

Can anyone practicing the profession and has expertise in Solvency II comment on it and can you guide me with some direction/understanding please?

I am confused with this principle.

Thanks
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 10:33 PM.


Powered by vBulletin®
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.15979 seconds with 11 queries