I work in GI and have never heard of it. It comes up in the notes but I cannot find a definition. Thanks
PRE is a rather vague concept, it's most commonly associated with with-profit policies' bonus declarations i.e. how much bonus a customer could reasonably expect from their policy. These expectations are built up from: 1) The company's past practise (what bonuses have been declared in previous years) 2) Other company's past and current practise (which bonuses do the market declare) 3) Any policy literature provided to the customer (e.g. example schedules which show maturity benefits based on an expected bonus rate) However, PRE could realistically be applied to all aspects of any policy e.g. it is within PRE to assume that their benefits will be paid on time, so paying benefits late would fail to meet PRE.
