I still think HLI need to answer the question more thoroughly about why, under their interpretation of aasb17, policy cancellations release capital(because the risk is no longer present) but does not release the premium held in newly named CSA.
in the theoretical scenario of all policies bei
ng cancelled , there would be no regulatory capital required yet all the premiums remain tied up as CSA for years.
I still think HLI need to answer the question more thoroughly...
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