Search within this section
Select a section below and enter your search term, or to search all click Insurance Contracts
Favorited Content
Reinsurance accounting | Deposit accounting |
Premiums paid to the reinsurer are recorded as ceded premiums (a reduction to revenue attributable to direct insurance written) over the coverage period of the reinsurance.
| Net amounts paid to the reinsurer are recorded as a deposit asset with no effect on revenue.
|
Expected reimbursements for losses are recorded as a reduction in losses as the losses are incurred with a corresponding reinsurance recoverable asset.
| Nonrefundable fees paid are recorded as expense over the period benefited, which is typically the settlement period of the deposit.
The asset is accreted using the interest method to the ultimate expected reimbursements.
Reimbursements for losses are recorded as a reduction in the deposit asset when cash is received. Any benefit to the ceding entity is recognized using the effective yield interest method over the settlement period.
|
Impacts premiums/surplus ratio/loss ratio (losses/premiums)
| No impact on premiums, losses incurred, or related insurance ratios.
|
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Select a section below and enter your search term, or to search all click Insurance Contracts