GIM6010 - Technical provisions: background

The paragraphs below explain the ‘unearned premium provision’ (UPP) and the ‘unexpired risks provision’ (URP). Strictly, the unearned premium provision is a deferred income item rather than a true provision. Remember that the most significant items within technical provisions are the provisions against claims outstanding and claims incurred but not yet reported - see GIM2170 for general accounting background. They also give guidance on the tax treatment of technical provisions according to established principles.

See GIM6145 to GIM6440 regarding the special rules of FA00/S107 which applied for periods from 1 January 2000 and periods ending before 19 July 2007, and GIM6500+ for the rules which (broadly) apply for periods from 1 January 2009.

1. GIM6020

   Unearned Premium Provision
2. GIM6030

   Unexpired Risks Provision
3. GIM6040

   Unexpired Risks Provision: differences between accounts and regulatory return
4. GIM6050

   Unexpired Risks Provision: discounting
5. GIM6060

   Unexpired Risks Provision: exchange gains and losses
6. GIM6070

   Unexpired Risks Provision: mortgage indemnity business
7. GIM6080

   General
8. GIM6090

   Accounting practice
9. GIM6100

   Reported claims and 'incurred but not reported' (IBNR)
10. GIM6110

    Salvage, subrogation and reinsurance recoveries
11. GIM6120

    Exchange gains and losses
12. GIM6130

    Claims handling expenses
13. GIM6140

    Enquiries