Document ID: chunk:federal_register_of_legislation:F2023L00604:reg:14:p7
Version: federal_register_of_legislation:F2023L00604
Segment Type: reg
Provision Reference: reg 14 (pt 7/12)
Character Range: 26026–30199

companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.

Expected net renewal commissions incurred         This is expected renewal commissions incurred over the reporting period, net of reinsurance. Commissions include rebates.

                                                  This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

F

Future premium liabilities (gross of reinsurance)  This is unstressed RFBEL arising from premiums expected to be received after the reporting date, gross of reinsurance.

                                                   Future premium liabilities (gross of reinsurance) is calculated as the sum of (all gross of reinsurance):

                                                        * present value of expected incurred claims;
                                                        * present value of expected commissions;
                                                        * present value of expected maintenance and overhead costs; and
                                                        * present value of expected other future premium liability component

                                                   Less:

                                                        * present value of expected premiums.

                                                   This is part of RFBEL (gross of reinsurance).

Future premium liabilities (net of reinsurance)    This is unstressed RFBEL arising from premiums expected to be received after the reporting date, net of reinsurance.

                                                   Future premium liabilities (net of reinsurance) is calculated as the sum of (all net of reinsurance):

                                                        * present value of expected incurred claims;
                                                        * present value of expected commissions;
                                                        * present value of expected other future premium liability component; and
                                                        * present value of expected maintenance and overhead costs

                                                   Less:

                                                        * present value of expected premiums.

                                                   This is part of RFBEL (net of reinsurance).

I

Investment Fluctuation Reserve (IFR)      This is a reserve used for smoothing discretionary additions for non-participating benefits. For the purpose of the capital adequacy standards the investment fluctuation reserve is defined to be the difference between the value of the assets administered for the purpose of a subcategory and the aggregate value of the accounts under the policies belonging to that subcategory.

Incurred But Not Reported (IBNR) reserve  This is the total expected claim payments and expenses in respect of claims incurred but not reported, that are associated with past premiums received prior to the reporting date.

                                          This is part of past premium liabilities of RFBEL.

In-force business                         This is business which was in-force as at the end of the previous reporting period which is still in-force as at the reporting date.

(Insurance business)

Insurance business                        This is the type of insurance business that a life company can have. Life companies must report data items by insurance business where required. Insurance business can either be:

                                               * in-force business;
                                               * new business; and
                                               * all business consisting of in-force business and new business.

                                          They can further be broken down into the