• PINS Part 8.6 PINS Part 8.6 Recognition and measurement of insurance assets and liabilities in respect of general insurance business

    Editorial changes (as from 1 January 2015).

    • PINS 8.6.1 Application of Part 8.6

      This Part applies to assets and liabilities in respect of general insurance business.

      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • PINS 8.6.2 [Deleted]

      Deleted by QFCRA RM/2013-1 (as from 1st January 2015).

    • PINS 8.6.3 [Deleted]

      Deleted by QFCRA RM/2013-1 (as from 1st January 2015).

    • PINS 8.6.4 [Deleted]

      Deleted by QFCRA RM/2013-1 (as from 1st January 2015).

    • PINS 8.6.5 [Deleted]

      Deleted by QFCRA RM/2013-1 (as from 1st January 2015).

    • PINS 8.6.6 [Deleted]

      Deleted by QFCRA RM/2013-1 (as from 1st January 2015).

    • PINS 8.6.7 PINS 8.6.7 Treatment of premium liability

      An insurer must recognise as a liability the premium liability, which is the value of future claims payments and associated direct and indirect settlement costs, arising from future events insured under policies that are in force as at the solvency reference date.

      Amended by QFCRA RM/2017-3 (as from 1st April 2017).

      • PINS 8.6.7 Guidance

        The liability referred to in PINS Rule 8.6.7 is commonly represented by insurers as 2 separate provisions, the unearned premium provision and the premium deficiency provision. The sum of the 2 provisions is sometimes referred to as the unexpired risk reserve, though this term is also sometimes used to describe the premium deficiency provision alone.

        Editorial changes (as from 1 January 2015).

    • PINS 8.6.8 PINS 8.6.8 Treatment of value of future claims payments

      An insurer must recognise as a liability the value of future claims payments and associated direct and indirect settlement costs, arising from insured events that have occurred as at the solvency reference date.

      Amended by QFCRA RM/2017-3 (as from 1st April 2017).

      • PINS 8.6.8 Guidance

        The liability referred to in PINS Rule 8.6.8 is commonly referred to as the liability for outstanding claims. Some insurers represent this liability as 3 separate provisions, being the liability in respect of reported claims, the liability in respect of claims incurred but not reported, and the liability in respect of settlement costs, also known as loss adjustment expenses.

        Editorial changes (as from 1 January 2015).

    • PINS 8.6.9 Treatment of expected recoveries

      An insurer must recognise as an asset the value of reinsurance and other recoveries expected to be received in respect of claims referred to in PINS Rule 8.6.7 and PINS Rule 8.6.8.

      Amended by QFCRA RM/2017-3 (as from 1st April 2017).

    • PINS 8.6.10 Valuation of expected future payments

      Where this Part requires an insurer to recognise as a liability the value of expected future payments, that liability must be measured as the net present value of those expected future payments.

      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • PINS 8.6.11 Valuation of expected future receipts

      Where this Part requires an insurer to recognise as an asset the value of expected future receipts, that asset must be measured as the net present value of those expected future receipts.

      Amended by QFCRA RM/2015-3 (as from 1st January 2016).