Question

At 31 Mar, management projects a worst-case stress showing net technical provisions plus URR exceed current solvency margin by 10%. Regulator requires prompt remedial plans. Which immediate action is most appropriate while preparing a remediation plan?

A Do nothing—wait for the next reporting period.
B Immediately halt new business until solvency restored.
C Notify regulator, prepare an action plan (capital injection, reinsurance, premium increase), and maintain business under regulator oversight.
D Transfer policy liabilities to a related party at book value.
E Recognise additional deferred tax to offset the deficiency.
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