Arguments that TRIA is not insurance - surcharges

HaleyIRHaleyIR
in Webel.TRIA-1

I seem to recall something from Exam 5 about insurance rates only being valid if they were based on prospective losses/costs, not to recoup for losses already incurred. Would this be a valid argument as to why TRIA is not insurance?

Comments

  • Staff - ACStaff - AC

    You get into iffy terrain when you give this as an answer. Residual risk mechanisms also recoup costs from the market, and they are considered to be insurance. I would stick with the C-MAC framework when answering this question.

  • HaleyIRHaleyIR

    Okay, good to know. thank you!

  • Staff - ACStaff - AC

    Sure, good luck.

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