margin required for unregistered reinsurance

lawtsmlawtsm
in OSFI.MCT

For the calculation problem 'MCT Capital Required: Insurance Risk (Unregistered Reinsurance)', should it be 20% instead of 15% in the following?
CapReq(UnregRe) = (UEP + O/S) x 15% – max(0, -D)

In section 4.3.3.3,
"The margin is 20% of premiums associated with the unexpired coverage on reinsurance contracts held, asset for incurred claims recoverable from the assuming insurer and cash flows out for funds withheld (the sum of amounts A, B and C in section 4.3.3.2)."

Comments

  • Staff-T1Staff-T1

    Hi,

    If you look at the practice template under for unregistered reinsurance, there is a footnote that explains this.

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