Premium liabilities

SsviraniSsvirani
in CIA.PrLiabs

Hi

In the wiki articles we have seen that DPAE = NET UPR - (APV + FUTURE REINSURANCE COSTS + MAINTENANCE COSTS) + UNEARNED COMMISSIONS . Is the part (APV + FUTURE REINSURANCE COSTS + MAINTENANCE COSTS) Called premium liabilities as well ?

Comments

  • chrisboersmachrisboersma

    Yes, anything that costs money related to unearned premiums:

    APV.unearned.claims
    + maintenance of unearned premiums
    + reinsurance costs for unearned premium

    Problem for this is how do you calculate: APV.unearned.claims?
    APV.unearned.claims = (Premium x LR) = (unearn - future reinsurance) x LR + ULAE

    So yes, but not that simple.

  • SsviraniSsvirani

    Thank you. Yes the APV.unearned claims like you mentioned is consistent with calculation on past exams. Thanks again!

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