PINS A3.8 Guidance

An insurer may be exposed to the risk that the cost of claims in respect of general insurance business will exceed the amounts recorded as liabilities in the insurer's balance sheet. The purpose of the outstanding claims risk component is to require an insurer to hold capital against this risk in accordance with the calculations set out in rule A3.8.2. This calculation only applies to liabilities in respect of outstanding claims (premium liabilities addressed in the premium risk component in Part A3.7).

Amended by QFCRA RM/2015-1 (as from 1st July 2015).