PINS 8.8.1 Methods and assumptions that may be used

In measuring long-term insurance business liabilities, an insurer must use methods and prudent assumptions that:

(a) are appropriate to the nature, scale and complexity of the insurer's business;
(b) are made using professional judgement, training and experience;
(c) are made having regard to reasonably available statistics and other information;
(d) are neither deliberately overstated nor deliberately understated;
(e) are consistent from year to year and without arbitrary changes;
(f) are consistent with the insurer's method of valuing assets;
(g) include appropriate margins for adverse deviation of relevant factors;
(h) recognise the distribution of profits or emerging surplus in an appropriate way over the duration of each contract of insurance; and
(i) are in accordance with generally accepted actuarial practice.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).