Hi In the chapter on policy data the section on Reconciliation checks says that for unitised business the 'benefits available' can be calculated. I just wanted to check if this is referring to the benefits in excess of the unit fund or in total, and would this be in terms of units rather than absolute values? I am sure that it could be used for either as with the other reconciliation for the number of units we could determine the excess or the total depending on which had been calculated. But I just wanted to see if there was a 'general' way that this is completed. In addition on the consistency checks, again for the unitised business it says. Check internal unit movements are consistent with the surplus emerging each year. It gives the example of charge encashments. Would this mean we would be checking charge encashments against expected charge encashments to confirm that it gives the surplus arising in the AoS for that item? Or something else? Thank you
Hi Rachael For the benefits available we would check the total benefit. Checking the benefit in excess of the unit fund would be very difficult as the unit fund would be changing with premiums/charges/investment return. But the total benefit (ie the sum assured) would be easy to check by taking the total sum assured at the start of the year, adding on the sum assured of new policies and taking away the sum assured of exiting policies. In the analysis of surplus we will be making an expense surplus if charges are bigger than expenses. So we can check that the charge encashments less the expenses are consistent with the expense surplus. Best wishes Mark
