Expenses at group vs portfolio level
The wiki states when discussing level of aggregation:
"Note that expenses must be allocated to groups but other assumptions may be applied at whatever level is most appropriate for estimating cash flows."
Is this talking about acquisition expenses? or are there other expenses that would be included here?
Comments
Any expenses directly attributable to the group of contracts, not just acquisition expenses. You can have claim expenses in the LIC and maintenance expenses attributable to the group of contracts for the LRC