Reserves Non-Life Insurance Management Of Insurance Companies (For Trial Implementation)

Original Language Title: 保险公司非寿险业务准备金管理办法(试行)

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(December 15, 2004, China insurance regulatory Commission order 2004 of 13th release as of January 15, 2005) Chapter I General provisions article in order to strengthen the supervision and administration of insurance reserves non-life insurance, to ensure sound operation and solvency of insurance companies, protection of the interests of the insured, in accordance with the People's Republic of China insurance, these measures are formulated.
    The second non-life insurance business in these measures refers to insurance business other than life insurance businesses, including property insurance, liability insurance, credit insurance, short term health insurance and accident insurance business and the business of reinsurance.
    Article insurance companies mentioned in these measures refers to in the People's Republic of China property insurance companies and reinsurance companies legally established in the territory, including the Chinese-funded insurance companies, Sino-foreign joint venture insurance companies, foreign-owned insurance companies and the branch of a foreign insurance company.
    Fourth engaged in non-life insurance business insurance companies mentioned in these measures should be in accordance with the provisions of the China insurance regulatory Commission, follows the principle and method of non-life actuarial and prudent principle, evaluation of reserves, and based on the assessment results, accurately extracting and closing.
    Chapter II reserves kind fifth insurance company reserves non-life insurance including unearned reserve, outstanding loss reserves and other reserves stipulated by the Circ.
    Sixth article not due responsibility reserves is refers to in reserves assessment day for yet terminated of insurance responsibility and extraction of reserves, including insurance company for insurance during in one years within (containing one years) of insurance contract items Xia yet due of insurance responsibility and extraction of reserves, and for insurance during in one years above (not containing one years) of insurance contract items Xia yet due of insurance responsibility and extraction of long-term responsibility reserves.
    Article seventh outstanding claims reserves refers to the insurance company for claims pending and extraction reserves, including reported outstanding claims reserve, has incurred but not reported claims reserves and loss adjustment expense reserves.
    Article eighth reported outstanding claims reserves refers to the insured event has occurred and to claim against the insurance company, insurance companies extract of pending claims and reserves.
    Nineth has incurred but not reported claims reserves refers to the insured event has occurred, but not yet submitting claims to insurance companies extract reserves. Article tenth loss adjustment expense reserves refer to pending claims costs that may occur while extracting the reserve.
    Directly to specific claims experts, lawyers ' fees, loss of inspection fees for direct loss adjustment expense reserves and extraction; for non-direct costs of specific claims for indirect loss adjustment expense reserves and extraction.
    Third chapter extraction 11th outstanding liabilities of extract, shall be in one of the following methods: (a) the one-twenty fourth method (based on months accrual); (b) the one-three hundred and sixty fifth method (based on days aside); (c) for certain special types, distribution according to their risk by using a more cautious and reasonable method.
    Reserve for unearned extraction method is determined, shall not be arbitrarily changed. 12th when extracting reserve for unearned insurance company, to test its adequacy.
    Unearned reserve is low, the premium deficiency reserve to extract.
    Report on the 13th has had an outstanding loss reserve, shall use case estimation method, payment method and other methods approved by the China insurance regulatory Commission carefully extracted.
    14th to reserve for incurred but not reported claims should be based on the nature of insurance risk, distribution, empirical data on factors such as the use of at least one of the following two ways to extract the cautious assessment: (a) the chain ladder method, (ii) reparations law; (iii) reserve development law; (d) B-F and other appropriate methods.
    Article 15th straight loss adjustment expense reserves should be taken case-by-case estimate method; for indirect loss adjustment expense reserves and adopt a more reasonable rates to extraction.
    Article 16th insurance containing investment or savings products, its risk protection part according to the above method to extract the unearned reserves and outstanding claims reserve.
    17th insurance company to extract the reserves shall not be discounted.
    Fourth chapter 18th report of an insurance company shall establish an actuarial reserve system specifies the actuary responsible for responsible for the provision of work. 19th an insurance company shall submit regularly to the China insurance regulatory Commission reserve evaluation report signed by the actuarial liabilities of the company.
    Reports should include the following: (a) the purpose of the report, (ii) declare the methods used to report in accordance with regulations of the insurance supervision Department and (iii) to obtain the actuarial assessment; (d) detailed instructions on reserving and (v) to report certain terms and prone to ambiguous concepts clearly explained.
    20th article on reserves assessment of description should including following content: (a) insurance species or category of clear divided standard and name; (ii) insurance species or category data of complete sex, and accuracy, and description data in the exists of problem; (three) assessment of fine is method and model, as fine is method and model and past used of method and model inconsistent, to description change of reasons and on reserves results of effect; (four) fine is method and model by used of important assumed and the reasons; (Five) Shang once reserves extraction of fine is results and reality Zhijian of differences; (six) reserves extraction of sufficient sex situation; (seven) on not due responsibility reserves of extraction, should description insurance species of periodic, and premium benchmark rates, and risk adjustment coefficient, and lost pay rate, and costs rate and back insurance rate, factors of changes situation; (eight) outstanding reparations reserves of extraction, should description reparations case number occurred law, and closed law, and case are reparations changes law, and bearing insurance practice, and claims practice, and
    Reinsurance arrangements and additional costs and other factors change.
    21st insurance company shall provisioning according to business-type or category, and again before and after reinsurance retention report to obtain results.
    22nd an insurance company shall submit reserves assessment report in accordance with China insurance regulatory Commission.
                                                                                                                              23rd these measures shall come into force on January 15, 2005.

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