Prepayment of premiums and reserves against outstanding claims
Definition
15.137 Prepayments of premiums and reserves against outstanding claims represents policy-holders’ net equity in, or claims on, the reserves of general insurance corporations. They equate to prepayments of premiums and reserves held to cover outstanding claims.
15.138 They consist of premiums paid but not yet earned (called unearned premiums) and claims due but not yet settled, including cases where the amount is in dispute or the event leading to the claim has not yet been reported (called claims outstanding).
Sources and methods – quarterly
15.139 The table below outlines the data sources and methods used in the estimation of quarterly prepayments of premiums and reserves against outstanding claims in current prices. Volume/real estimates are calculated for the national balance sheet.
| Item | Comment |
|---|---|
| Prepayments of premiums and reserves against outstanding claims | |
Prepayments of premiums and reserves against outstanding claims are constructed using unearned premiums and claims outstanding data from the following balance sheet data:
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