Difference between nuclear premiums paid and received for MCT margin

nuche17nuche17
in OSFI.MCT

Hi,

For calculating the margin for nuclear risks, I'm not sure what the difference is between "premiums paid" and "premiums received". The example is here https://battleactsmain.ca/wiki6c/File:OSFI.MCT-IFRS_(040b)_example_insurance_risk_answer.png
Does it have to do with reinsurance? As in, "Paid" is the insurer paying premiums for their nuclear reinsurance policy, while received is the direct premiums from their own customers?

Thanks in advance!

Comments

  • Staff-T1Staff-T1

    Premiums received are the direct written nuclear premium (i.e. premium received from policyholders for nuclear coverage. Premiums paid are the ceded nuclear policy premiums that are paid to reinsurers.

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