PFN PIN 6.9 PFN PIN 6.9 Form 5: Statement of claims and reinsurance and other recoveries
PFN PIN 6.9.1 PFN PIN 6.9.1
This form is required for each reporting unit in respect of which the
Insurermust prepare an Annual Regulatory Return, except for the Global Returnof an Insurerthat is a Protected Cell Company.
PFN PIN 6.9.1 Guidance
A Protected Cell Company is prevented by
COBfrom carrying on Insurance Businessother than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
PFN PIN 6.9.2
Insurermust record claims paid and reinsurance and other recoveries in respect of claims paid relating to its Insurance Businesson this form as follows:(a) An Insurerthat is carrying on General Insurance Businessmust complete part I of this form;(b) An Insurerthat is carrying on Long-Term Insurance Businessmust complete part II of this form; and(c) An Insurerthat is carrying on Long-Term Insurance Businessand General Insurance Businessof Class1 or Class2 must record the General Insurance Businessin a manner consistent with that adopted in respect of form 4 as determined under (c).
PFN PIN 6.9.3
At items 1 to 8 and items 21 to 27, against each
Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurermust record its gross claims paid for the reporting period in respect of that Class of Businessand for that type of insurance contract.
PFN PIN 6.9.4
For the purposes of this form, the amount of claims paid includes expenses incurred by the
Insurerin the settlement of the claims.
PFN PIN 6.9.5 PFN PIN 6.9.5
At items 11 to 18 and items 30 to 36, against each
Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurermust record the reinsurance and other recoveries receivable in respect of claims paid, in respect of each Class of Businessand each type of insurance contract.
PFN PIN 6.9.5 Guidance
Reinsurance recoveries must be analysed between columns 1 and 4 on the basis of the underlying insurance contracts that they relate to, not on the basis of the reinsurance contracts themselves. Where the nature of the reinsurance contract is such that the
Insurercannot identify individual claims benefiting from the recoveries (for example, in the case of an aggregate excess of loss contract, or a stop loss contract) the Insurermust make a reasonable allocation of the recoveries across the types and Classes of Businessthat have benefit of the reinsurance contracts.
PFN PIN 6.9.6
Insurermust disclose the aggregate amount of its insurance and reinsurance transactions with its Relatedparties as follows:(a) At item 10, the amount of gross claims paid to Relatedparties that has been included in the total at item 9;(b) At item 20, the amount of reinsurance and other recoveries receivable from Relatedparties that has been included in the total at item 19;(c) At item 29, the amount of gross claims paid to Relatedparties that has been included in the total at item 28; and(d) At item 38, the amount of reinsurance and other recoveries receivable from Relatedparties that has been included in the total at item 37.