GIM6010 - Technical provisions: background

The paragraphs below explain the ‘unearned premium provision’ (UPP) and the ‘unexpired risks provision’ (URP). Strictly, the unearned premium provision is a deferred income item rather than a true provision. Remember that the most significant items within technical provisions are the provisions against claims outstanding and claims incurred but not yet reported - see GIM2170 for general accounting background. They also give guidance on the tax treatment of technical provisions according to established principles.


GIM6020

Unearned Premium Provision

GIM6030

Unexpired Risks Provision

GIM6040

Unexpired Risks Provision: differences between accounts and regulatory return

GIM6050

Unexpired Risks Provision: discounting

GIM6060

Unexpired Risks Provision: exchange gains and losses

GIM6070

Unexpired Risks Provision: mortgage indemnity business

GIM6080

General

GIM6090

Accounting practice

GIM6100

Reported claims and 'incurred but not reported' (IBNR)

GIM6110

Salvage, subrogation and reinsurance recoveries

GIM6120

Exchange gains and losses

GIM6130

Claims handling expenses

GIM6140

Enquiries


See GIM6145 to GIM6440 regarding the special rules of FA00/S107 which applied for periods from 1 January 2000 and periods ending before 19 July 2007, and GIM6500+ for the rules which (broadly) apply for periods from 1 January 2009.