PET - Plain English Taxonomy

Label:	Financial Risk Capital Adequacy Margin Servicing Expenses Percent
TREF ID:	DE5322
Data Type:	xbrli:pureItemType
Period Type:	instant
Business Description & Guidance:	Report the Capital Adequacy Margin applied to the best estimate assumptions for Servicing Expenses, as per the capital adequacy standard. The margin must be applied so as to produce a more conservative estimate of the liability than best estimate.Servicing expenses are all expenses that relate to the cost of administering policies subsequent to the sale and recording of policies and administering the general operations of the life company (maintenance expenses) and managing the investment portfolio (investment management expenses).

Usage

Form	Labels
LRF_410_0	Label: Guidance:	Servicing Expenses - Capital Adequacy Margin Only report the Capital Adequacy Margin applicable to the main Related Party Group. In the case of a friendly society, as per the Capital Adequacy standards, the margin to be included in the Capital Adequacy Assumption for Servicing Expenses is Nil: the servicing expense risk is borne, and hence provided for, in the management fund. For other life insurance companies, a risk margin must be included for Servicing Expenses. The margin must not be applied to any component of those expenses which is contractually agreed for the life of the policy, for example, renewal commission.

Form

Labels

LRF_410_0

Label:

Guidance:

Servicing Expenses - Capital Adequacy Margin
Only report the Capital Adequacy Margin applicable to the main Related Party Group.

In the case of a friendly society, as per the Capital Adequacy standards, the margin to be included in the Capital Adequacy Assumption for Servicing Expenses is Nil: the servicing expense risk is borne, and hence provided for, in the management fund. For other life insurance companies, a risk margin must be included for Servicing Expenses. The margin must not be applied to any component of those expenses which is contractually agreed for the life of the policy, for example, renewal commission.