CTHRepealedLegislation
Life Insurance (prudential standard) determination No. 2 of 2012
Insurance Risk ChargeInsurance Risk Charge
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Insurance Risk Charge
31. The Insurance Risk Charge relates to the risk of adverse impacts due to movements in future mortality, morbidity, longevity, servicing expenses, lapses and other insurance risks such as option take-up rates.
32. The Insurance Risk Charge for a fund is determined by assessing the impact on the capital base of the fund of adverse changes in the variables in paragraph 31. The method for determining the Insurance Risk Charge is set out in Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge (LPS 115).