Question
a.
By multiplying the reserve by a fixed factor
b.
By multiplying the sum at risk by a fixed factor
c.
By adding the reserve and sum at risk
d.
By multiplying factors based on reserve and sum at risk with adjusted values
Posted under IC 92 Actuarial Aspects of Product Development
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Q. How is the Required Solvency Margin (RSM) calculated using the factor-based approach?
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Q. What is the purpose of multiplying the first factor by K1 in the RSM calculation?
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Q. In the factor-based approach, which factor is usually higher: the factor based on reserves or the factor based on the sum at risk?
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Q. What are the two main approaches to calculate the Required Solvency Margin (RSM)?
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Q. In the factor-based approach, which factor is typically higher: the factor based on reserve or the factor based on sum at risk?
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Q. What does RSM stand for?
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Q. What is the limitation of the factor-based approach in calculating RSM?
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Q. How does the risk-based capital approach address the limitation of the factor-based approach?
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