Sample solution 1 in the examiner's report: "If dealing with unregistered reinsurers, it may decrease credit risk ". Is this a typo? I thought dealing with unregistered reinsurers would increase credit risk. Please confirm.
I think what they mean is if you are dealing with an unregistered reinsurer and your EQ reserves decrease, then your credit risk from that unregistered reinsurer would be lower because you have less to potentially recover from them. That's my take on it.
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Hi,
I think what they mean is if you are dealing with an unregistered reinsurer and your EQ reserves decrease, then your credit risk from that unregistered reinsurer would be lower because you have less to potentially recover from them. That's my take on it.