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RM-5.1.12

Additional factors that general insurers may consider appropriate in assessing the levels of claims risk include:

(a) The adequacy and uncertainty of the technical claims provisions, such as outstanding claims, IBNR and claims handling expense reserves;
(b) The adequacy of other underwriting provisions, such as the provisions for unearned premium and unexpired risk reserves;
(c) The appropriateness of catastrophe models and underlying assumptions used, such as possible maximum loss (PML) factors used; and
(d) The effects of inflation.
Amended: January 2007