SAM

Question 1

Operational risk - inputs

Answer 1

1. Earned premiums (CY and PY)
2. TP excl RM
3. BSCR
   Depends which part of formula bites

Question 2

Risk margin

Answer 2

1. Project non-hedgeable SCR into future
2. Multiply by 6%
3. Discount at rfr
4. Sum

Question 3

MCR - inputs

Answer 3

1. operational expenses (excl acquisition costs)
2. SCR
3. TPs and CAR - more info coming

Question 4

Market risk - instruments

Answer 4

Interest rate - bonds
Spread risk - corporate bonds
Equity - shares
Currency - foreign equity/cash/bonds
Default type 2- Re recoverables
Default type 3 - cash
concentration - exclude SA bonds