Claims expenseClaims expense

Claims expense

Claims expense for the purpose of this form relates to events that occur during a financial period and which are paid in that same period (i.e. no provision for the liability has been recognised) and where a claims liability (and corresponding claims expense) has been recognised for those claims which have yet to be settled in that period (i.e. movements in the Outstanding Claims Provision).

Note: Claims expense is to be reported in the column “Total Claims Expense” gross of reinsurance recoveries and other recoveries such as salvage.

For claims expense relating to movements in the Outstanding Claims Provision, the Outstanding Claims Provision as reported in GRF 300.0 Statement of Financial Position is to be used, not necessarily the Outstanding Claims Provision as calculated in accordance with GPS 210 Liability Valuation for General Insurers and reported in GRF 210.0 Outstanding Claims Provision and Insurance Risk Charge.

The total amount of claims expense reported in this form must match the component of total claims expense reported in line item called “Claims expense relating to current and prior years (i.e. in relation to outstanding claims provision)” in GRF 310.0 Statement of Financial Performance.

The claims expense is to be disclosed by type of business (i.e. direct business and inward reinsurance business).

Do not recognise movements in the Premium Liabilities as claims expense for the purposes of this form.

Reinsurance recoveries received and receivable

Report the amount of reinsurance recoveries receivable in relation to those claims recognised in the calculation of the gross claims expense.