GIM6140 - Technical provisions: accounting periods beginning before 1 January 2000: enquiries

In appropriate cases, where there appears to be evidence of over-reserving, enquiries may be needed. Forms 23, 31, and 34 of the regulatory returns provide, for each class of business, an analysis of claims for each “year of origin” and the “run off development”, i.e. how actual claims have matched up to the initial reserve, and will be the starting point for any enquiry. Most insurers will use actuarial techniques to set reserves. Although the techniques used can be highly technical, the results of applying such techniques are only as good as the underlying data and assumptions and these can be challenged using familiar enquiry approaches.

The LBS has access to professional actuarial advice and guidance on reserving techniques.