Claims liabilities
A liability for outstanding claims is recognised in respect of both direct insurance and
inward reinsurance.
Provision for claims liabilities is made for the estimated costs of all claims together with
related expenses less reinsurance recoveries, in respect of claims notified but not settled
at the statement of financial position date. Provision is also made for the cost of claims,
together with related expenses, incurred but not reported at the date of the statement of
financial position, based on an actuarial valuation with a PRAD at a 75% confidence level
as required by BNM.
Throughout the course of the year, management regularly re-assesses claims and
provisions both on an individual and class basis, based on independent professional
advice and reports, other available information and management’s own assessment of the
claims and provisions.