PET - Plain English Taxonomy

Label: Expense Insurance Claims Gross Reserve Strengthening Not Discounted Amount
Data Type: xbrli:monetaryItemType
Period Type: duration
Balance Type: debit
Business Description & 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 Labels
Reserve Strengthening
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.