Prudential Regulation Authority Rulebook

13.1

The cash-flow projection used in the calculation of the best estimate must include all of the following cash-flows, to the extent that these cash-flows relate to existing contracts of insurance:

1. (1) benefit payments to policyholders;
2. (2) payments that the firm will incur in providing contractual benefits that are paid in kind;
3. (3) payments of expenses as referred to in 9.1(1) of the Technical Provisions Part;
4. (4) premium payments and any additional cash-flows that result from those premiums;
5. (5) payments between the firm and intermediaries related to insurance or reinsurance obligations;
6. (6) payments between the firm and investment firms in relation to contracts with index-linked benefits and unit linked benefits;
7. (7) payments for salvage and subrogation to the extent that they do not qualify as separate assets or liabilities in accordance with UK-adopted international accounting standards; and
8. (8) taxation payments which are, or are expected to be, charged to policyholders or are required to settle the insurance or reinsurance obligations.
9.