Label: |
Premiums Liabilities - Central Estimate |
Concept Guidance: |
This is the value, as at the relevant date, of the central estimate component of premiums liabilities, determined in accordance with relevant prudential standards.Premiums liabilities relate to all future claim payments arising from future events post the valuation date that will be insured under the reporting entity's existing policies that have not yet expired. The value of the premiums liabilities must include an amount in respect of the expenses that the reporting entity expects to incur in administering and settling the relevant claims and allow for expected premium refunds.The value of premiums liabilities must not include any Government charges directly imposed on the reporting entity such as levies, duties and taxes, and must be gross of input tax credit recoveries. Also a deferred acquisition cost asset must not be reported.The central estimate will be measured as the present value of the future expected payments, i.e. discounted for future investment income, determined in accordance with relevant prudential standards. The central estimate is intended to reflect the mean value in the range of possible values for the outcome (that is, the mean of the distribution of probabilistic outcomes), and so does not include any risk margin.
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