RA Reinsurance

AndrewLAndrewL
in CIA.IFRS17-2

To evaluate RA for reinsurance, we are told that:

  1. We either use cost of reinsurance or the difference in position from purchasing reinsurance.
  2. Then we are also told to use either Quantile, CoC, Cat modeling or Proportional scaling.

But how 1) relates to 2)?

Thanks!

Comments

  • bennybees1bennybees1

    I'm not sure but I think #2 are just quantitative methods listed to measure/calculate what's listed in #1

  • AndrewLAndrewL

    Thanks @bennybees1 I do not think so though.

    For example, how would we relate cost of reinsurance to any of the methods mentioned in 2)?

  • Staff-T1Staff-T1

    All the examples above are possible approaches to determining a risk adjustment for reinsurance

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