M
Michal Piatra
Member
Hi,
I would like to ask about treatment of reinsurance premiums under Solvency II.
So far, I've only seen mention about treating PV of expected recoveries from reinsurance as an asset in the Core reading and questions solutions.
If question asks about impact of reinsurance on the balance sheet, it just mentions that reinsurance premium paid reduce assets.
It is clear, that if it's paid by single premium it will just reduce assets immediately.
However, what about expected reinsurance premiums paid in the future?
Are the expected reinsurance recoveries reduced by the PV of these and shown netted down in the Asset column?
Similarly I would like to ask about reinsurance commissions.
Thank you.
Best wishes,
Michal
I would like to ask about treatment of reinsurance premiums under Solvency II.
So far, I've only seen mention about treating PV of expected recoveries from reinsurance as an asset in the Core reading and questions solutions.
If question asks about impact of reinsurance on the balance sheet, it just mentions that reinsurance premium paid reduce assets.
It is clear, that if it's paid by single premium it will just reduce assets immediately.
However, what about expected reinsurance premiums paid in the future?
Are the expected reinsurance recoveries reduced by the PV of these and shown netted down in the Asset column?
Similarly I would like to ask about reinsurance commissions.
Thank you.
Best wishes,
Michal