Operational Risk

NycxBattleNycxBattle
in OSFI.MCT

In the source text its states:
Pa is premiums received in the past 12 months for reinsurance contracts issued arising from third party reinsurance

This is the only component that has 1.75% risk factor, but in the question (Fall 2017 Q 20), it used the wording "Assumed written premium in the last 12 months". However in the source text the only component with 1.75% is premiums received in the past 12 months for reinsurance contracts issued arising from third party reinsurance. These component seems like two different.

Please advise.

Thanks,
Philip

Comments

  • Staff-T1Staff-T1

    It's the same thing. Assumed written premium are the premiums from written reinsurance that we assume from the primary insurer

  • NycxBattleNycxBattle

    Thanks for the clarification

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