[BattleCards] MCT 4: CAPITAL REQUIRED: INSURANCE RISK - ERX3

chrisboersma

Method 3 (standard model):
→ ERX3= max( [East Canada PTIV], [West Canada PTIV] ) - deductible

The above equation is inconsistent with the guide. The MCT guide clearly puts the deductible inside the brackets and specifically states only "applicable" deductibles.

From guide:
Country-wide PML = Maximum (East Canada PTIV – applicable policyholder deductibles,West Canada PTIV – applicable policyholder deductibles),

Ie. the Western deductibles would not help reduce the Eastern PTIV exposures and vice versa.

graham

This has been corrected. Thanks.