Self - sustainability

pass23pass23
in Chev.Agric

Hi, just a clarification on this question,

Question 1: how is self-sustainability defined?

Conceptual defn: RECOVER from severe loss scenarios WITHIN a reasonable time
Statistical defn: FOR ALL (base, adverse) scenarios with INITIAL DEFICIT = 6th yr, 95th percentile: MUST RECOVER DEFICIT IN (15yrs on avg AND 25yrs with 80% probability)

Does this mean that there is 15 years additional after the 6 years or there is 9 years after the fund loss?

Comments

  • Staff-T1Staff-T1

    At the end of the 6th year of projection, the insurer should the deficit on within 15 years on average, and have an 80% chance to recover within 25 years.
    Yes, it would be 15 years AFTER the 6th year has passed so 21 years in total for criteria 1

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