Page 67 - MC14326 all pages
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The South African Insurance Industry Survey 2016 | 63
PAA
We note that at the end of quarter 1, under the PAA, there is no liability for
remaining coverage. The liability for remaining coverage is calculated as follows:
Premiums received for the quarter 30 000
Less: acquisition costs paid (6 000)
Less: acquisition costs expenses
Less: revenue recognised 6 000
Liability for remaining coverage (30 000)
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BBA
The insurance liability for remaining coverage under BBA is as follows:
Present value of future cash flows 30 June 31 December
Risk adjustment 36 110 10 310
CSM (1 960) (858)
Liability for remaining coverage
(36 900) (12 300)
(2 750) (2 848)
