Regulatory Alerts1992-12-01
Added · Updated
Profitability of Insurance Product Categories: Third-Party Motor, All Risks, and Transport
The Control Service clarifies the application of Article 21bis of the Control Act regarding the profitability analysis of Third-Party Motor, All Risks, and Transport insurance categories. Insurers are required to allocate operating costs and revenues across 33 product categories, replacing previous allowances for allocation by insurance branch, and must justify their allocation methods. The document introduces new statistical reporting requirements, including specific columns for non-technical income, unrealized capital gains/losses, and profit-sharing, while mandating the use of the C.D.V. method for investment returns unless an alternative respecting established principles is justified. Effective analysis will shift from calendar years to accident or underwriting years to better capture recent profitability trends, and insurers must reconcile these statistics with annual accounts using new Annexes C.1 and C.2.
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