Net Premium received past 12 months

AndrewLAndrewL
in OSFI.MCT

In Spring 2019 qu13, they do 0.3*(Direct Written Premium - Ceded Premium).

Is this the equivalent of net premium received? I do not think it is
Or the formula was different back then?

Comments

  • Staff-T1Staff-T1

    Yes, the formula is correct. That would reflect net written premium since there are no assumed premiums.

    No, the formula has not changed

  • AndrewLAndrewL

    Thanks @Staff-T1.

    Though this would represent NWP not net premium received past 12 months.

    Do you recommend I follow the same step and call some assumption to be safe?

  • Staff-T1Staff-T1

    Oh, taking a closer look yes you are right - Because of IFRS17 this has changed. In fact most of the MCT formulas have changed. This question is no longer relevant anymore, but in the actual exam they will probably just give you the premiums receivable

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