Insurance Company - Technical Provisions Establishing Technical Provisions

Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a non-directive insurer, other than a non-directive friendly society; and
  2. (2) subject to 1.2, a Swiss general insurer.

2.1

01/01/2016

For general insurance business, a firm must establish adequate technical provisions in accordance with Insurance Company – Overall Resources and Valuation 3.1.

2.2

01/01/2016

For long-term insurance business, a firm must establish adequate technical provisions in respect of its contracts of long-term insurance as follows:

  1. (1) for liabilities in respect of such contracts that have fallen due, in accordance with Insurance Company – Overall Resources and Valuation 3.1;
  2. (2) otherwise, mathematical reserves in accordance with the Insurance Company – Mathematical Reserves Part of the PRA Rulebook and with due regard to generally accepted actuarial practice.