reins investment rate
Battle card 3 says reins investment rate should not be relevant in risk transfer test, battle card 4 #3 says reins expected investment rate can be an alternative to the risk free rate for risk transfer test. These two statements feel contradictory
Comments
While the risk-free rate is generally recommended for discounting cash flows in risk transfer testing, some practitioners argue that using the reinsurer's expected investment rate might be reasonable, as it reflects their anticipated returns. However, this approach has drawbacks: it could lead to inconsistent results depending on the reinsurer's investment strategy, which introduces non-insurance factors into the analysis. The accounting standards do allow for judgment in selecting a "reasonable and appropriate" rate, but any deviation from the risk-free rate must be carefully justified.
Unfortunately I am not sure which battle quiz you are looking at to answer your question more precisely. If you could tell me which battle cards from which battle quizzes you are looking at, I might be able to give you a more specific answer.