Prudential Regulation Authority Rulebook

21.1

The best estimate for general insurance business obligations must be calculated separately for the premium provision and for the provision for claims outstanding.

21.2

The premium provision must relate to future claim events covered by insurance and reinsurance obligations falling within the contract boundary referred to in 3. Cash-flow projections for the calculation of the premium provision must include benefits, expenses and premiums relating to these events.

21.3

The provision for claims outstanding must relate to claim events that have already occurred, regardless of whether the claims arising from those events have been reported or not.

21.4

Cash-flow projections for the calculation of the provision for claims outstanding must include benefits, expenses and premiums relating to the events referred to in 21.3.