Spring 2018 #18
Can you help me understand what's going on with NWP growth rates for the R5 calculation in Spring 2018 #18 part a examiner's report? I don't quite understand why the NWP growth rates get capped at 40%. I'm also confused on why this was the process as opposed to the typical PCF calculation (I see that there is no LSD).
Comments
Here is the wiki note regarding the 40% cap:
https://battleacts6us.ca/wiki6us/Odomirok.19-RBC#Week_2:Day_5.28R5.29:~:text=(average%20growth%20over%20last%203%20years)%20is%20capped%20at%2040%25%20for%20each%20year
The reason for the cap is probably to limit the charge for excess growth to within reason.
The insurer writes a single line, so the PCF is 1. Excess growth charge is different from premium concentration adjustment.