hstai91
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Could you clarify a bit more? If the unearned premium is already "discounted" which is what we use to derive attributed cost as well, why do we apply discounting on attributed cost? What I am trying to understand is both the future acquisition cost …
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So in Q8, since we decide to group #1 and #2 together, we would have to use GMA for both. If we decide to use PAA for #1, then they have to be group separately?
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In the sample q, PV of attributable costs uses discount factor of premium I am curious why can't the same be use for discounting future acquisition cost as it is also derived based on premium?