Multiples of Retained Risk
Hi,
Can someone give an example of this materiality standard?
thanks,
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Hi,
Can someone give an example of this materiality standard?
thanks,
Comments
If a homeowners insurance company provides hurricane insurance where the total value of the properties is say 10 billion, then a multiple of retained risk might be something like:
Saying "multiples" makes it sound like the materiality standard would be 5x or 10x the retained risk, but I believe it's just a fractional multiple.
Thanks! That was the exact issue I was having with "multiples".