Prudential Control Authority

Instruction No. 2013-I-05 creating the statement on the provision for incurred but not reported claims – C24

The Prudential Control Authority,

Having regard to the Monetary and Financial Code, particularly Article L. 612-24 thereof;

Having regard to the Insurance Code, particularly Articles R. 331-17, R. 331-18, A. 331-21, and A. 344-8 thereof;

Having regard to the opinion of the Prudential Affairs Consultative Committee dated May 13, 2013;

Decides:

Article 1

The detailed annual report provided for in Article A. 344-8 of the Insurance Code is supplemented by the table STATEMENT ON THE PROVISION FOR INCURRED BUT NOT REPORTED CLAIMS – C24 of the annex to this instruction.

It is submitted by the entities designated below:

1. Insurance companies exercising direct insurance activities mentioned in Article L. 310-1 of the Insurance Code and offering guarantees covered by the calculation provided for in Article A. 331-21 of the Insurance Code;

2. Reinsurance companies whose registered office is located in France and offering guarantees covered by the calculation provided for in Article A. 331-21 of the Insurance Code.

Article 2

The table STATEMENT ON THE PROVISION FOR INCURRED BUT NOT REPORTED CLAIMS – C24 is prepared in accordance with the provisions of Articles R. 331-17, R. 331-18, and A. 331-21 of the Insurance Code and in accordance with the technical modalities defined by the General Secretariat of the Prudential Control Authority.

Article 3

This instruction enters into force on December 31, 2013.

Article 4

This instruction will be published in the official register of the Prudential Control Authority.

Paris, May 28, 2013

The President of the Prudential Control Authority, [Christian NOYER]

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Instruction No. 2013-I-05 creating the statement on the provision for incurred but not reported claims – C24 Annex

Statement on the provision for incurred but not reported claims

Difference in vintage n	0	1	2	3	4	5	6	7	8	9	10	11	12	13
Cases / Declared cases
Late
Recoveries collected and to be collected
Administrative expenses
A
Written premiums
Premiums to be written
Premiums to be cancelled
Acquisition costs
B
n	-	-	3.40	2.00	1.40	1.00	0.70	0.50	0.35	0.25	0.20	0.15	0.10	0.05
bn	1.00	1.00	0.95	0.85	0.75	0.65	0.55	0.45	0.35	0.25	0.20	0.15	0.10	0.05
Msn
MPn
Net IBNR after recoveries
Estimated recoveries
IBNR before recoveries
Derogatory IBNR under the common law method
Net IBNR after recoveries
Estimated recoveries
IBNR before recoveries

Prudential Control Authority 2

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Instruction No. 2013-I-05 creating the statement on the provision for incurred but not reported claims – C24 Prudential Control Authority 3

Difference in vintage n	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14+
NET OF RECOVERIES
A viewed at the end of year n
IBNR viewed at the end of year n
Net claim charge after recoveries at the end of year n
A viewed at the end of year n+1
IBNR viewed at the end of year n+1
Net claim charge after recoveries at the end of year n+1
A viewed at the end of year n+2
IBNR viewed at the end of year n+2
Net claim charge after recoveries at the end of year n+2
A viewed at the end of year n+3
IBNR viewed at the end of year n+3
Net claim charge after recoveries at the end of year n+3
A viewed at the end of year n+4
IBNR viewed at the end of year n+4
Net claim charge after recoveries at the end of year n+4
A viewed at the end of year n+5
IBNR viewed at the end of year n+5
Net claim charge after recoveries at the end of year n+5
A viewed at the end of year n+6
IBNR viewed at the end of year n+6
Net claim charge after recoveries at the end of year n+6
A viewed at the end of year n+7
IBNR viewed at the end of year n+7
Net claim charge after recoveries at the end of year n+7
A viewed at the end of year n+8
IBNR viewed at the end of year n+8
Net claim charge after recoveries at the end of year n+8
A viewed at the end of year n+9
IBNR viewed at the end of year n+9
Net claim charge after recoveries at the end of year n+9
A viewed at the end of year n+10
IBNR viewed at the end of year n+10
Net claim charge after recoveries at the end of year n+10
A viewed at the end of year n+11
IBNR viewed at the end of year n+11
Net claim charge after recoveries at the end of year n+11
A viewed at the end of year n+12
IBNR viewed at the end of year n+12
Net claim charge after recoveries at the end of year n+12
A viewed at the end of year n+13
IBNR viewed at the end of year n+13
Net claim charge after recoveries at the end of year n+13
A viewed at the end of year n+14
IBNR viewed at the end of year n+14
Net claim charge after recoveries at the end of year n+14

Surplus / Deficit compared to the previous fiscal year