PINS S3.1 What is reserving risk?
(1) Reserving risk is the risk that the reserves set aside by the insurer for its insurance liabilities (net of reinsurance and other recoveries for those liabilities) will be inadequate to meet the net amount payable when the insurance liabilities crystallise.
(2) In this Part, insurance liabilities includes:
(a) the liability for claims incurred up to the reporting date;
(b) the premium liability; and
(c) for long-term insurance business — the net value of future policy benefits and reinsurance recoveries anticipated for those liabilities.
|Inserted by QFCRA RM/2013-1 and amended by Editorial changes (as from 1st January 2015).|