PET - Plain English Taxonomy

Attribute:	R14326
Concept:	Expense Insurance Claims Gross Reserve Strengthening Not Discounted Amount
Label:	Reserve Strengthening
Concept Guidance:	This is the value of the rise in claims expense recognised for the relevant period which is due to prior period reserve strengthening. This item refers to movements in outstanding claims provisions due to changes in the assumptions used to calculate outstanding claims in prior periods that result in increases in the provision. It includes the impact of changes in the probability of sufficiency.This item is determined in accordance with the relevant accounting standards, except that it is not discounted as required by those accounting standards.
Form-Specifc Guidance:	Reserve strengthening refers to those occasions when a provision that was created/ posted at the end of the previous financial year, is subsequently found to be insufficient to cover both the related claim payments made in the current financial year and the re-estimated value of outstanding future claim payments (including risk margin) at the end of the current financial year. Reserve strengthening is assessed for particular accident years for direct writers of insurance and underwriting years for reinsurance writers. In these instances where the opening provision is insufficient, the insurer strengthens or increases these provisions to accommodate the additional costs expected from this particular prior accident / underwriting year. This becomes a reduction in profit (i.e. rise in the claims expense) in the current financial year. Enter reserve stengthenings as a positive figure.

Dimensions

Dimension	Member	Description
AccidentYearDimension	(AccidentYrGT5Prev)	This dimension is used to categorise reported insurance information based on the accident year to which the data relates.Accident year refers to the financial year of the insurer that the losses/claims are incurred. For example, the 2007 accident year for an insurer with a balance date of 30 June will relate to claims with dates of loss (regardless of notification date) occurring between 1 July 2006 and 30 June 2007. The insurance information reported is in relation to the accident years which are more than 5 years previous to the current accident year.Accident year refers to the financial year of the insurer that the losses/claims are incurred. For example, the 2007 accident year for an insurer with a balance date of 30 June will relate to claims with dates of loss (regardless of notification date) occurring between 1 July 2006 and 30 June 2007.
ClassOfBusinessDimension	(ReinsuranceBusiness)	This dimension is used to categorise information according to business activity. Report where the class of business relates to reinsurance contracts.Reinsurance contracts are insurance contracts where the policyholder is an insurer or reinsurer. Policyholder means a party that has a right to compensation under an insurance contract if an insured event occurs.
ProductGroupDimension	(OI11580)	This dimension categorises reported data according to predefined product groups.
RecoveriesValueTypeDimension	(Net)	This dimension identifies the valuation scenario, in relation to recoveries, under which the reported value was calculated. The information reported is in relation to the value of the asset or liability after allowing for the relevant adjustments.
UnderwritingYearDimension	(UWYrGT5Prev)	This dimension is used to categorise reported insurance information based on the underwriting year to which the data relates.Underwriting year refers to the financial year of the insurer in which the insurance policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 January 2005 to 31 December 2005. The insurance information reported is in relation to the underwriting years more than five years previous to the current underwriting year.Underwriting year refers to the financial year of the insurer in which the insurance policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 January 2005 to 31 December 2005.