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Application provision

1.1 Unless otherwise stated, this Part applies to a non-directive insurer which carries on long-term insurance business, other than a non-directive friendly society.

2.1

01/01/2016

  1. (1) Subject to (2), a firm must establish its mathematical reserves using a prospective actuarial valuation on prudent assumptions of all future cash flows expected to arise under, or in respect of, each of its contracts of long-term insurance.
  2. (2) A firm may use a retrospective actuarial valuation where:
    1. (a) a prospective method cannot be applied to a particular type of contract; or
    2. (b) the firm can demonstrate that the resulting amount of the mathematical reserves would be no lower than would be required by a prudent prospective actuarial valuation.