Non-life insurance: SECP issues guidelines for firms
The guidelines prescribe a standard method for the estimation of IBNR claims reserve
ISLAMABAD:
The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines for non-life insurance companies on methodology for estimation of incurred but not reported (IBNR) claims reserve, applicable with effect from July 1, 2016. The IBNR claims refer to those claims which have been incurred during the period covered by the insurance policy, but have not been reported to the insurance company during the accounting year, hence, making it difficult for the insurance company to adequately provide for such losses, a statement of SECP said here on Thursday. The guidelines prescribe a standard method for the estimation of IBNR claims reserve and will bring about standardisation and uniformity across the non-life insurance sector in respect of such estimation.
Published in The Express Tribune, March 11th, 2016.
The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines for non-life insurance companies on methodology for estimation of incurred but not reported (IBNR) claims reserve, applicable with effect from July 1, 2016. The IBNR claims refer to those claims which have been incurred during the period covered by the insurance policy, but have not been reported to the insurance company during the accounting year, hence, making it difficult for the insurance company to adequately provide for such losses, a statement of SECP said here on Thursday. The guidelines prescribe a standard method for the estimation of IBNR claims reserve and will bring about standardisation and uniformity across the non-life insurance sector in respect of such estimation.
Published in The Express Tribune, March 11th, 2016.