August 24th, 2009

Solvency II – Summary of CEIOPS March Consultation Papers: Technical Provisions – Treatment of Future Premiums

Posted at 1:00 AM ET

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The first core principle is that a (re)insurance contract should be recognized as a contract when the entity becomes a party to it. The contract is deemed to have expired when its underlying obligations have expired. Any allowance for options (e.g., paying future premiums, increased cover) under a particular contract should only be taken into account if it increases the best estimate of the liability. The second core principle is that future premiums as well as corresponding benefit payments and expenses which relate to an option or a guarantee can only be considered if their inclusion increases the best estimate of the underlying liability.

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Contributors:

  • Susan Witcraft, Managing Director
  • Frank Achtert, Managing Director
  • Iain Boyer, Managing Director
  • Michelle Harnick, Managing Director
  • Dave Lightfoot, Managing Director
  • Scott Lohman, Managing Director
  • Don Mango, Managing Director
  • Eddy Vanbeneden, Managing Director
  • Jeff Bellmont, Senior Vice President
  • Gina Carlson, Senior Vice President
  • Debbie Griffin, Senior Vice President
  • David Flandro, Senior Vice President
  • Benoît Butel, Vice President
  • Sebastien Portmann, Vice President
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