On Apr. 8, UKRN CB proposed changes on insurers' technical reserves.
UKRN CB proposed amendments to legal acts regulating activities in insurance sector, clarifying certain issues regarding the formation of technical reserves of insurers.
Materials to consider comprise Project; comparative table; project impact analysis.
Proposals
In particular, updated criteria to apply simplifications when forming technical reserves of insurers defined, procedures for verifying adequacy of loss reserves clarified.
Also, procedure for accounting for advance payments under insurance contracts when calculating premium reserves and determining the signs of burdensomeness of a cohort of contracts has been clarified to align approaches with IFRS 17.
In addition, monthly calculation of the premium reserve is established when using the simplified model; some terms have been clarified (eg statistical outlier, bonus reserve).
Requirements for work experience for those engaging in actuarial activities clarified.
Also provides for the possibility for the insurer to submit the minutes of the general meeting instead of only the minutes of the supervisory board within the framework of the market exit procedure through the execution of the insurance portfolio.
Effectiveness
UKRN CB accepts comments on the project until Apr. 29, 2025, using specified form.
Regulators
UKRN CB
Entity Types
Ins
Reference
CP, PR, 4/8/2025
Functions
Accounting; Actuarial and Valuation; Compliance; Financial; Operations; Risk; Treasury
