Fall 2016 #18
Can you show how you calculated the cumulative unpaid values at the start of each year in the risk margin portion of the pdf solution? And the reasoning behind the calculation?
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Can you show how you calculated the cumulative unpaid values at the start of each year in the risk margin portion of the pdf solution? And the reasoning behind the calculation?
Comments
Expected future mid-year payments are (100, 60, 40). From this, the unpaid at the start of each year is (200=100+60+40, 100=60+40, 40).
Hi, for 2017, we use the cumulative loss 200. I recall there is a similar problem in Solvency 2 to calculate the risk margin, but didn't have to use the cum. sum to solve that one. Is the cum. sum method for GAAP only?
Which problem in Solvency 2 do you refer to please?