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Hi I am struggling a bit with the concept of a negative liability from a balance sheet perspective. I think I understand the concept from an...
Hi everyone, I just want to ask a question that does not relate to the exam. Could you please explain to me why the sub-module CAT doesn't exist...
Hi, I am looking at the forumlae for the calculation of SCRs for each individual module. I referred to two sources listed below: (the EIOPA...
Hi, I would like to ask about treatment of reinsurance premiums under Solvency II. So far, I've only seen mention about treating PV of expected...
My understanding of credit spread is that it is the extra yield on backing assets (say corporate bonds) that is in excess of risk-free rates. The...
Say, I'm an insurer and I've placed a deposit in Bank X. Which category does the default risk of the Bank X fall in in the context of Solvency 2?...
Is the inherited estate under SII either: 1. free surplus (Own funds less SCR) 2. or own funds? 3. Also the estate is defined as realistic assets...
I am a bit confused by what constitutes assets under Solvency II for an insurer and how the investment return assumption is formed. 1. I...
What is the cost of capital rate is it either: 1. The rate of return required by shareholders if they invested the capital freely? 2. The...
Practice question 18.1 of the EV chapter says "net assets will be the total asses in excess of those covering technical provisions plus SCR under...
Under solvency II is the investment return assumption used to project future cashflows in relation to the calculation of the best estimate...
Question 7iii of ST2 Septemeber 2009 compares embedded value assumptions against assumptions used to calculate statutory reserves. 1. I assume...
How does traditional reinsurance reduce required capital? This is mentioned under section 6 of chapter 14 (capital management). I consider...
Why does the risk margin increase with increased reinsurer default risk. I understand the SCR will increase if the capital requirements from the...
Hi, I had a few questions regarding with-profits funds and Solvency II. A with-profits fund would have a Solvency II balance sheet as Assets =...
The notes in Chapter 9 section 4, page 8 state the following: "For statutory returns the SFCR liabilities may be discounted following Solvency ll...
May you please help me understand these 2 statements on solvency capital requirements: page 4 - " Some countries use a different approach... This...
Notes Chapter 4 Section 4.1 (Page 29): the introduction of Solvency II has reduced the effectiveness of such methods (raise capital through...
What is the reason of allowing for unwind discount step when doing a step through from last years to this years expenses under solvency ii? An...
Hi, I would like to ask that, apart from with-profits policies, is it common for other business lines to have dynamic management actions & dynamic...
Hi, I am getting quite confuse with the following types of tests: Stress testing Scenario testing Sensitivity testing Under Solvency II, are the...
Hi, I would like to ask that: 1. How does the extent of effort in meeting 6 standards of regulatory model approval (use test, statistical quality,...
Hi, I would like to ask that: 1. Assuming an indemnity-based contract, is the notional amount on which floating & fixed payments are based...
Hi, I would like to ask that: 1. In chapter 17 of CMP in conducting an analysis of surplus: a. Can I say that example in section 3 is reconciling...
Hi, I would like to ask that, for a life insurance group: 1. What are the examples of asset/capital items that are transferable between branches...
The SCR calculation only goes into details for the insurance, market and default risk modules. Can I assume that the calculation for the...
I'm a little confused by the BEL for the savings element of the UL contract versus the GAO. In particular: The BEL for the unit fund projects...
One of the contract boundaries is "the point at which premiums/benefits can be changed in such a way that they fully reflect the risks". Do...
I was wondering if someone could explain the rational for some of the shocks only applying where they would lead to an increase in BEL? I get that...
It states that due to non-linearity, a higher SCR could be produced for the 99.5% than that calculated by the correlation matrix. Therefore...
In Pillar 1 Peak 1 calculations, the company may assume policyholder behaviour that does not result in the most onerous reserve if: it is in the...
CMP, Chapter 16 Page 26 (Securitisation): "The introduction of Solvency II, which does allow credit to be taken for expected future profits...
