impairment
what does impairment mean? and how does it cause reinsurers to be unable to pay separate from the issue of solvency?
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what does impairment mean? and how does it cause reinsurers to be unable to pay separate from the issue of solvency?
Comments
This refers to the impairment (weakening) of the reinsurers ability to pay. It is any and all factors that causes this that are known. The new rule requires that you go beyond these, to an estimate of the ultimate uncollectible. Sort of like setting IBNR.