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Why does the Policyholder OEP Curve drop to 0 at 4, but the Insurer OEP doesn't drop to 0 at 18?
It should drop to 0 after 18 because the primary insurer cedes any loss over 18m from their perspective. The primary insurer graph should terminate in the same manner as the policyholder's graph. We'll clean up the PDF in time for the next sitting.
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It should drop to 0 after 18 because the primary insurer cedes any loss over 18m from their perspective. The primary insurer graph should terminate in the same manner as the policyholder's graph. We'll clean up the PDF in time for the next sitting.