Qz-7-[6]

JConceicaoJConceicao
in OSFI.MCT

Quiz Question: Impact of increasing Unreg Reins, on Operational Risk.

I would expect Credit risk to increase instead of Insurance risk, no?
I know that Unreg Reins is one of the 4 components of Ins Risk, but it's also a negative subcomponent of LIC and Unexp Covg. I would expect the Insurance Risk to have a net decrease

Comments

  • Staff-T1Staff-T1
    edited April 2023

    Credit risk would increase to the extent that you'd need additional collateral yes. I think this is in the context of the insurer purchasing unregistered reinsurance, rather than registered reinsurance

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