"Premium Liabilities " and "Policy liabilities in connection with UPR", do they really mean the same

battleactsbattleacts
in CIA.PrLiabs

"Premium Liabilities " and "Policy liabilities in connection with UPR", do they really mean the same thing, just different wording? They both refer to APV(Claim&LAE) + Future Reinsurance Cost + Maintenance Cost ?

Comments

  • grahamgraham

    Yes, that's correct. The source reading mentions this in Section 1 in the "Definitions" subsection. Saying "Policy Liabilities in connection with the UPR" is more descriptive because it spells out exactly what it refers to. (But it is a little confusing having 2 different terms for the same concept)

    In general:

    • policy liabilities = claim liabilities + premium liabilities

    or equivalently

    • policy liabilities = claim liabilities + policy liabilities in connection with UPR

    And note that on the left side of the above equation, the term "policy liabilities" doesn't refer only to the UPR.

  • battleactsbattleacts

    Thank you for clarifying the terms.

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