Intro

Question 1

What is APN 401?

Answer 1

It is an advisory practice note that provides guidance to members on the valuation and calculation of technical provisions using non-life insurance valuation principles

Question 2

What does APN 401 consider?

Answer 2

It considers the valuation of non-life insurer’s technical provisions. It also considers non insurance entities TPs for which non-life insurance valuation principles are used

Question 3

What falls out of the scope of APN 401?

Answer 3

Calculating capital requirements, expressing an opinion on a solvency assessment or valuing assets

Question 4

Which legislation or standards require the valuation of technical liabilities that APN 401 may be applicable to?

Answer 4

1. The Insurance Act 2017 and Prudential Standards

2. Relevant accounting standards such as IFRS and IAS

Question 5

What applications does this APN apply to?

Answer 5

1. Published financial reporting
2. Statutory reporting
3. Independent valuations
4. Commutation agreements
5. Valuations for foreign companies