ERM-134-19: Group Insurance, Skwire, 2016, Ch. 39: Risk Based Capital Formulas

Use this thread to discuss ANYTHING and EVERYTHING related to this syllabus reading.
Some possible questions include:

  • How can this reading be tested?
  • I don’t understand a specific topic/formula - Can we discuss this?
  • This reading gives me nightmares. Can we talk through it a bit?

Good luck!


This reading is mainly focusing on the health RBC formula, while the overall ERM study material seems only touching briefly on health product related risks. Anyone feel this is odd?

Also, the whole reading covers a lot on how weighted risk factors related to the H1 Underwriting Risk component should be calculated depending earned premium or incurred claim amounts. Anyone feel the need to memorize all those factors ? (e.g. for Comprehensive coverage, 3% update to 25 mil of premium and 9% for +25 mil premium)

Any particular way you think this reading can be tested?