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Chapter 13
Question:
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11 12
Chapter 13: [Barbados]
Technical provisions
13.1 Are there specific regulations concerning the technical provisions of insurance companies?

yes, according to commercial law

yes, according to insurance supervisory law

yes, according to other law(s) and/or regulations

no

General comments:

13.2 The following technical provisions are to be set up:

Life Non-life

provision for unearned premiums

provision for unexpired risks

life insurance provision / other mathematical provision

claims outstanding, including IBNR

equalisation/catastrophe provision

provision for bonuses and rebates / funds for future appropriation

technical provision for unit-linked life insurance policies

others, please state:

Comments:

13.3 Does your jurisdiction request insurance companies to set up

equalisation provisions forming part of technical provisions

equalisation reserves forming part of the company's own funds

neither equalisations provisions nor equalisation reserves are required

Comments:

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13.4 Where it exists the setting-up of the equalisation provision is

statutory for all classes

statutory for all non-life classes

statutory for certain non-life classes

statutory, other system

voluntary

Comments:

13.5 Please mark the respective calculation methods for life insurance business and whether the
increase in the provisions is tax deductible

technical provisions are

calculated on tax deductible
calculated on calculated acc.
basis of
case-by-case to statistical
actuarial
basis methods fully partly no
principles
life insurance provision /
other mathematical
provision
provision for bonuses
and rebates / funds for
future appropriation
technical provision for
unit-linked life insurance
policies
others, please state:

Please mark the respective calculation methods for non-life insurance business and whether
the increase in the provisions is tax deductible

technical provisions are

calculated calculated calculated tax deductible
on case- acc. to on basis of
by-case statistical actuarial
basis methods principles fully partly no

provision for unearned premiums

provision for unexpired risks

claims outstanding, including IBNR

equalisation/catastrophe provision

others, please state:

Comments:

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13.6 The following amounts are disclosed in the balance sheet:

gross reinsurer's share

net amount
amount asset side liability side
life insurance provision / other mathematical
provision
technical provision for unit-linked life insurance
policies
provision for bonuses and rebates / funds for
future appropriation

provision for unearned premiums

provision for unexpired risks

claims outstanding

equalisation/catastrophe provision

others, please state:

Comments:

13.7 Allowance for deferred acquisition costs, either by treating them as an asset or by reducing
the value of liabilities by using a technique such as zillmerisation is

yes no

allowed in life insurance with savings elements

allowed in term insurance

allowed in other cases of insurance

Comments:

13.8 Is discounting of claims outstanding admitted in non-life insurance business?

yes no

If 'yes' please state which criteria are to be met:

there has to be a mimimum average duration for the settlement of claims

the discounting is effected on a recognised prudential basis

the company has to take account of all factors that could cause increases in total claims settlement
costs

adequate data for a reliable model is available

the rate of interest used for the calculation of present values does not exceed a prudent estimate
of the investment income from assets

other conditions

no specific conditions

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Comments:

13.9 As regards the choice of mortality tables for the calculation of life insurance provisions

the insurance companies are free to choose any appropriate mortality table

certain mortality tables are prescribed for specific products

an actuary is responsible for selecting the appropriate mortality tables

the actuary may ask the company to use other mortality tables

the mortality tables used are subject to approval by the supervisory authority

the mortality tables need to be notified to the supervisory authority which may ask the company to
use other tables

other system (please state under comments)

Comments:

13.10 As regards the choice of interest rates for the calculation of life insurance provisions

insurance companies are free to choose any appropriate interest rate

the interest rate is fixed by law, regulation or by the supervisory authority

a maximum interest rate is fixed by law, regulation or by the supervisory authority

an actuary is responsible for determining the interest rate

the actuary may ask the company to use a different interest rate

other system (please state under comments)

Comments:

13.11 Are there special coverage requirements (i.e. requirements to hold assets of certain quality
the amount of which at least equals the technical provisions)?

to be covered by admissible assets

no coverage
on a gross net of requirement
basis reinsurance

technical provisions in life insurance

technical provisions in non-life insurance

Comments:

13.12 Are life insurers required to hold assets separated for participating / with profit business and
non-participating / without profit business?

Yes

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No

Comments:

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