Premium provisions vs UPR

Discussion in 'SA3' started by Jinning, Feb 4, 2016.

  1. Jinning

    Jinning Member

    Hi
    Could anyone help explain the difference between premium provisions and UPR? Chapter 4 Page 14 mentioned that "Technical Provisions comprise premium provisions and claims provisions". Thanks.

    Cheers
    Jinning
     
    Jinning, Feb 4, 2016
    #1
  2. avnish

    avnish Member

    My understanding is that premium provisions relate to URR rather than UPR.
     
    avnish, Feb 4, 2016
    #2
    Sonam Gosai likes this.
  3. MorningtonCrescent

    MorningtonCrescent Member

    Avnish is right.

    They're talking about "claims provisions" as the reserves for claims that have already happened (eg outstandings, IBNR etc), and "premium provision" are the amounts relating to policies that are still on risk (for Solvency II that's URR, not UPR).
     
    MorningtonCrescent, Feb 5, 2016
    #3

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