|Note 8A: Claims expense|
|Total claims expense||26,634||22,051|
|Note 8B: Insurance recoveries|
|Total insurance recoveries||1,619||1,178|
|Note 8C: Insurance premium revenue|
|Total insurance premium revenue||35,474||31,796|
|Note 8D: Reinsurance expense|
|Total reinsurance expense||6,526||6,455|
|Note 8E: Movement in unexpired risk liability|
|Unexpired risk liability as at 1 July||-||1,816|
|Recognition of additional unexpired risk liability||-||-|
|Release of unexpired risk liability||-||(1,816)|
|Unexpired risk liability as at 30 June||-||-|
|Deficiency recognised in the statement of comprehensive income|
|Movement in unexpired risk liability||-||(1,816)|
|Total deficiency recognised in statement of comprehensive income||-||(1,816)|
|Calculation of deficiency|
|Expected future claims per actuary report||-||13,417|
|Less: recorded unearned premiums||-||(15,557)|
No unexpired risk liability is necessary for 2013 as there is no deficiency.
|Note 8F: Claims outstanding|
|Gross claims outstanding||13,676||14,882|
|Less: reinsurers liability||(2,706)||(3,671)|
|Net claims outstanding||10,970||11,211|
The Scheme has incurred claims during 2012–13 for which recoveries have and will be made in accordance with reinsurance treaties, which were in force at the date of loss. The effect of these treaties is taken into account in calculating the Provision for Outstanding Claims.
In determining the gross claims outstanding, the actuary has applied a prudential margin of 9% (2012: 9%), to a central estimate of the expected present value of future payments for claims incurred of $13,676,434 (2012: $14,882,078), resulting in a risk margin component of $1,129,247 (2012:$ 1,228,796).
|Claims outstanding expected to be settled in 12 months||9,679||10,209|
|Claims outstanding expected to be settled in more than 12 months||1,291||1,002|
|Total claims outstanding||10,970||11,211|
|Note 8G: Unearned revenue|
|Insurance agency revenue received in advance||172||188|
|Total unearned revenue||19,563||16,822|
All unearned revenue is expected to be settled in no more than 12 months.
Note 8H: Net claims incurred
|year||Prior years||Total||Current year||Prior years||Total|
|Gross incurred *||16,343||10,291||26,634||15,088||6,963||22,051|
|Less: Reinsurance and other recoveries||(1,483)||(136)||(1,619)||(38)||(1,140)||(1,178)|
|Net claims incurred||14,860||10,155||25,015||15,050||5,823||20,873|
* Claims are not subject to discount
Building insurance claims are typically resolved within one year. No claims development table is required under AASB 1023 17.7.1 (b) (iii) for lines of business typically resolved within one year.