Regulatory Alerts2015-12-03
Added · Updated
Determination of premium provision for basic health insurance under Solvency II
The premium provision for basic health insurance is determined as the present value of future liabilities less future income, subject to contract boundaries in Article 18 of the Solvency II Commission Delegated Regulation. Early premium payments do not form part of this provision, and the coverage extent decreases throughout the year, disappearing at the end of the claim year. At the end of the financial year, the value of the premium provision serves as the starting value for the new financial year based on expected cash flows.