If I understand your question, you're asking about how the MCT calculation for CapReq(unpaid claims) relates to the MfAD for unpaid claims?
These calculations are not directly related to each other. In other words, the MCT calculation is separate from the calculation of reserve liabilities. That means the risk factor(s) for unpaid claims isn't directly related to the MfAD for unpaid claims.
Another way to think about it is that the MCT calculation is for regulatory purposes while the MfAD calculation is determined by the actuary doing the reserves. Of course, they are not completely unrelated, but they would not be tied together in any specific way as you mentioned in your post.
Comments
If I understand your question, you're asking about how the MCT calculation for CapReq(unpaid claims) relates to the MfAD for unpaid claims?
These calculations are not directly related to each other. In other words, the MCT calculation is separate from the calculation of reserve liabilities. That means the risk factor(s) for unpaid claims isn't directly related to the MfAD for unpaid claims.
Another way to think about it is that the MCT calculation is for regulatory purposes while the MfAD calculation is determined by the actuary doing the reserves. Of course, they are not completely unrelated, but they would not be tied together in any specific way as you mentioned in your post.