If a company's reserve is still in the Appointed Actuary's range of reasonable estimates after adding the material deviation to the company's booked reserve, why does a significant risk of material adverse deviation still exist?
For example,
Appointed Actuary's range of reasonable estimates 90 -110
booked reserve 102.5
material deviation 5
107.5 is still between 90 -110
For example,
Appointed Actuary's range of reasonable estimates 90 -110
booked reserve 102.5
material deviation 5
107.5 is still between 90 -110
stupid question on SAO
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