Schedule - II - refer clause (b) of sub-regulation (1) of regulation 5
International Financial Services Centres Authority (Assets, Liabilities, Solvency Margin and Abstract of Actuarial Report for Life Insurance Business) Regulations, 2023 Schedules SCH SCHEDULE
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Mathematical reserve valuation requires prudent prospective cash-flow assumptions, option costs, and safeguards for linked insurance business. Life insurance mathematical reserves must be determined for each policy using prospective valuation, reflecting future premium and benefit contingencies, ... Summary
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International Financial Services Centres Authority (Assets, Liabilities, Solvency Margin and Abstract of Actuarial Report for Life Insurance Business)...
Mathematical reserve valuation requires prudent prospective cash-flow assumptions, option costs, and safeguards for linked insurance business.
Life insurance mathematical reserves must be determined for each policy using prospective valuation, reflecting future premium and benefit contingencies, policyholder bonus expectations, options, guarantees, and prudent assumptions incorporating a Margin for Adverse Deviations. Gross Premium Valuation is the usual method; permitted alternative approximation methods cannot yield lower reserves. The gross premium method discounts material future cash flows, including premiums, benefits, bonuses, commissions, expenses, shareholder allocations where linked to bonus rates, and tax. Options and guarantees are valued as special cash flows.
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