Solvency II - Discounting Liabilities - question

nkekarnkekar
in Odomirok.25-Solv2

I'm confused when reviewing the example problems when comparing 2017 Spring #20 b and 2015 Fall #19 b. With regards to determining what regulatory action is required, for 2017 the discounting of est liabilities is not needed for full credit, but in the 2015 problem is appears to be required. Why is there a discrepancy here? I would assume discounting should always be required here.

Comments

  • Staff - ACStaff - AC

    Discounting of future loss payments is ordinarily needed. In 17.S.20, no payout pattern is given, leaving open the possibility that the given best estimate is already discounted. That's why they accept answers both with an without discounting. In 15.F.19, a payout pattern was given and you're expected to discount it.

  • nkekarnkekar

    Thanks!

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